Factors affecting the implementation of the accrual-based international public sector accounting standards (IPSAS) as planned in Zambia.
The purpose of this Dissertation was to determine factors affecting the implementation of the accrual-based International Public Sector Accounting Standards (IPSAS) as planned in Zambia. In 2013, the Zambian Government announced its intentions to transition to Accrual based IPSAS from the traditional cash-based method of accounting. However, by the end of 2021, Zambia was yet to migrate to accrual based IPSAS. The study adopted a quantitative research design. The results of the study showed 88.1 percent of the participants were aware of the Government’s intention to adopt accrual based IPSAS. In terms of perceived benefits, the findings agreed that overall, the accrual based IPSAS had more benefits compared to the traditional cash-based method. However, the participants disagreed that the Zambian Government could not adequately finance the costs related to the implementation of accrual based IPSAS. Additionally, they also disagreed with the statement that the public sector lacked adequate human resources to implement the accrual based IPSAS in Zambia. Further, they were of the view that the current policy and regulatory frameworks were adequate to support the adoption of accrual based IPSAS. Furthermore, the technology that is currently in use in public institutions was noted to be compatible with accrual based IPSAS. The findings showed that challenges in the adoption process included the inadequate knowledge among public institutions’ staff on the use and application of accrual based IPSAS in Zambia. Equally, there was inadequate training among public institutions’ staff in the application and use of accrual based IPSAS. With regards to whether Government had devoted many resources to the process of adopting the accrual based IPSAS, the participants were of view that it had not. The Dissertation recommends that the government, through the Ministry of Finance as an implementing policy agency, should ensure there is sufficient awareness of the road map for the adoption process with clear milestones defined. Additionally, the government should engage more stakeholders in the road map implementation process and consider implementing the accrual based IPSAS in a phased manner. Furthermore, there is need to assess the status of the current infrastructure compatibility for accrual based IPSAS. This will help to address the impediments currently being faced in the migration process.
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