Evaluating the Reality and Prospects of IPSAS Implementation in Algeria

Widad Benzine

doi:10.37075/FABA.2024.2.03

Authors

Widad Benzine Department of Finance and Accounting, University Abdelhamid Mehri Constantine2, Constantine, Algeria https://orcid.org/0000-0002-8164-382X

DOI:

https://doi.org/10.37075/FABA.2024.2.03

Keywords:

IPSAS implementation, Accrual Basis, Governmental Accounting Reforms, Algeria

Abstract

Purpose: This study aims to illuminate the current state of public sector accounting in Algeria and explore the prospects for transition to International Public Sector Accounting Standards (IPSAS) by investigating the potential advantages and challenges as critical factors affecting implementation.

Design/Methodology/Approach: The study adopts quantitative approach. Data were collected through questionnaires from a sample of 163 participants working in the financial and accounting departments of government departments across five provinces in eastern Algeria. PLS-SEM was employed to analyze the data and test the proposed model.

Findings: The study revealed that international harmonization, structural and organizational transformation, and skills significantly impacted IPSAS implementation in Algeria. However, the findings showed that the effect of the accrual basis poses a challenge due to a skills gap.

Practical Implications: This study provides important insights for officials, highlighting the need to strengthen the regulatory and legal framework for government accounting, develop employee skills through comprehensive training programs, and adopt a gradual implementation to ensure a smooth and successful transition to IPSAS.

Originality/Value: This study provides an original and timely contribution to understanding the factors driving the successful implementation of IPSAS in Algeria. By analyzing the potential advantages and challenges, this study provides valuable practical, context-specific insights for officials and contributes to understanding the path of international accounting reforms.

Paper Type: Research Paper

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