Nationalism versus globalization: public sector accounting international harmonization and national resistance

Abstract

The process of harmonization of public sector accounting systems within the European Union (EU) and the development of European Public Sector Accounting Standards (EPSAS) seems to be encountering some national resistance. This is mainly due to the reliance on International Public Sector Accounting Standards (IPSAS), which are based on their private sector counterparts designed for business accounting. In certain countries, this can conflict with national rules and traditions relating to public sector accounting. This chapter shows that public sector entities and governments are not averse to accrual accounting per se, but there is resistance to accrual-based accounting and reporting as presented in IPSAS. The factors underlying such resistance are inherent in the makeup of the IPSAS themselves, and are aggravated when national traditions are not aligned with the IPSAS culture.