Accrual reporting – recording the economic substance of transactions when they occur rather than when cash settlement occurs – is fundamental to good decision making, transparency and accountability.
Analyzing data captured by IFAC and CIPFA's International Public Sector Financial Accountability Index, this 2018 Status Report (published in November 2018) analyzes information from 150 jurisdictions across the globe to develop an understanding of the bases and frameworks used in public sector financial reporting.
The results paint a positive picture for future accrual and adoption efforts globally.
Within five years, it is projected that the number of governments reporting on accrual will rise from 25% to 65%. The greatest areas of accrual reform during this time will be Africa, Asia and Latin America and the Caribbean.
Within Five Years, 65% of Governments will Report on Accrual
There is significant accrual adoption activity underway across all regions of the world. Based on the Index findings, it is clear that the number of governments reporting on accrual will more than double in the next five years. The current projection is that, by the end of 2023, 98 of governments (65% of the Index population) will report fully on accrual.
The regions expected to see the greatest increases in accrual adoption by 2023 include:
- Africa: 19 total countries (two currently)
- Latin America and the Caribbean: 23 total countries (seven currently)
- Asia: 21 total countries (six currently)
Contribute to the Index
To contribute or update information about your country to the International Public Sector Financial Accountability Index, please email LindaLach@ifac.org or firstname.lastname@example.org
IPSAS Usage and Influence Will Increase
Of the 98 governments projected to be reporting on accrual by 2023, 74 will be making use of IPSAS in one of three ways:
(Data reflects updates as of 2/28/2019. For more information, download country-by-country data here)
- 31 governments will adopt IPSAS directly
- 14 governments will adopt IPSAS indirectly
- 29 governments will use IPSAS as a reference point