Authors: Ioanna Vrondou, Ioannis Georgopoulos, Evangelos Chytis

Title: Αdoption of the International Public Sector Accounting Standards (IPSAS) in Greece. The Case of the Local Administration Organizations

Abstract

Problem statement: The global economic and financial crisis requires critical changes in the management of each country. The road to financial reformation is an important element that will help improve the administration and control of public economics. Τhe International Public Sector Accounting Standards (IPSAS) are an important tool for the Public Sector aiming to improve the transparency, quality and comparability of financial information. Approach: In this study, the current Greek public accounting system of the Local Administration Organization will be presented. Follow a reference in the conditions and the procedure of implementation of IPSAS and finally, this study will investigate: a) the acceptance b) the preparation level and c) the readiness of the IPSAS by the Local Administration Organization. methodology: In order to accomplish the aims of this study a research was realized, using a questionnaire, to officers and employees of the financial services of Municipalities and to elected representatives who are responsible for the financial management. The survey results show that despite the fact that the officers and employees of financial services of Municipalities know very little about IPSAS there is a wide acceptance of the need to implement them. It was also noted that the municipalities are not prepared for their implementation. Conclusions: The study shows that our country is at a premature step in application of IPSAS. In addition, it showed a delay in the implementation of existing enacted reforms.

Keywords: International Public Sector Accounting Standards,IPSAS, First Adoption, Local Governments Administration

JEL classifications: M40, M41, M49