Technical and administrative realities with the 'glocalization' of IPSAS: a NZ observation

Purpose: The research objective is (1) to identify and communicate issues surrounding the adoption of International Public Sector Accounting Standards (IPSAS) for public sector financial reporting in a jurisdiction which... [ view full abstract ]

Purpose: The research objective is (1) to identify and communicate issues surrounding the adoption of International Public Sector Accounting Standards (IPSAS) for public sector financial reporting in a jurisdiction which previously had adopted IFRS for such entities; and (2) to explore how glocalization is particularly pertinent to an understanding of IPSAS adaption during global uptake.
Design/methodology/approach: This offers an analysis of empirical data from a survey/questionnaire at a meeting of the Public Sector Accountants Special Interest Group of the Chartered Accountants Association of Australia and NZ.
Findings: Through the study of New Zealand processes of public sector accounting standard development, glocalization can be observed as a feature of IPSAS adoption. The NZ stakeholder reaction suggested the adaptations were generally well received, although some technical issues, as well as administrative bungles, were documented.
Research limitations/implications: The major limitation is in the low response rate from the survey, and the justification for offering the analysis explores the inherent limitations in such low response numbers.
Originality/value: Other jurisdictions such as the UK use IFRS for public sector reporting; thus it is of considerable interest to observe the transition thereof in a public sector setting. The value in this study is in its combination of a jurisdiction-specific experience with an understanding of the broader issues of ‘global versus local’. IPSAS are not under pressure from global capital markets to deliver on their promise of comparability; glocalization happened, and may well again happen with the EUPAS under development.