Financial Management Challenges for Public Services around the Globe

Article excerpt


IN the midst of the most significant financial crisis for decades and the growing number of sovereign debt concerns around the world, the spotlight is on public financial management and financial reporting like never before.

In a rapidly changing public sector landscape where the size and scale of austerity measures being implemented are unprecedented, ACCA is keen to see improvements in financial reporting and financial management around the globe. We recognise that there is a growing international movement to improve financial reporting in the public sector there is still a mountain to climb.

Therefore, a key aspect of ACCA's technical and policy focus over the next couple of years will be to promote effective public financial management and financial reporting worldwide.

International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS) have been around for sometime so there should be no excuse for governments not following them.

Although Wales and the rest of the UK follow international accounting standards this is not always the case around the world.

There is currently a variety of accounting standards and accounting approaches applied by governments and this needs to change. …