The study showed that most OECD countries have reformed and modernised their financial reporting practices over the last few decades, and says audit techniques and accounting standard-setting mechanisms have also evolved significantly in the wake of accounting reforms.

While national governments continued to be slow to adopt international accounting standards directly, such as International Public Sector Accounting Standards (IPSAS) or International Financial Reporting Standards (IFRS), many standard setters use IPSAS or IFRS as primary or explicit references for developing their national standards, the research found.

The study, which examined accounting and budgeting practices at the national government level in OECD countries, discusses the challenges and benefits of accruals reforms and considers what steps countries are taking to make better use of accrual information in the future.

Fayez Choudhury, IFAC CEO, said: ‘High-quality financial reporting is essential to ensure that governments make fiscal decisions based on up-to-date information and an accurate understanding of their financial position.

‘They provide a mechanism through which legislatures, auditors, and the public at large can hold governments accountable for their financial performance.’

Accrual Practices and Reform Experiences in OECD Countries is here.