The IFAC study, which examined accounting and budgeting practices at the national government level in OECD countries, showed how most of these countries have reformed and modernised their financial reporting practices over the last few decades.
“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,” IFAC CEO Fayez Choudhury said.
“They provide a mechanism through which legislatures, auditors and the public at large can hold governments accountable for their financial performance.”
The study also showed that many standard setters used international accounting standards such as the IPSAS or IFRS as primary or explicit references to develop their national standards, although direct adoption remained low.
“While governments still seek to improve the usefulness and comprehensibility of their financial reports, a majority of OECD countries expressed satisfaction that accounting reforms have already resulted in greater transparency and accountability of their financial operations,” the OECD’s head of budgeting and public expenditures division Jon Blondal said.