The Accounting Harmonization Process: Italian Public Principles and International Accounting Standards. Is It a Cultural Choice?
Affiliation(s)
Aggregate Professor of Public Accounting, University of Sannio and Partner KPMG. Consultant KPMG, Government and Public sector, Italy.
Aggregate Professor of Public Accounting, University of Sannio and Partner KPMG. Consultant KPMG, Government and Public sector, Italy.
ABSTRACT
The aim of this paper is to evaluate the complex process of Accounting Harmonization, which involves the Italian Public Administration and the pressure to have a more transparent information system for the development of suitable accountability and comparability. Additionally, the paper examines the degree of diffusion of the IPSAS, the main characteristics of these principles and the difficulties face implementing them. These difficulties, lead to the creation of a set of European Public Sector Accounting Standards (EPSAS). The introduction of the new accounting rules is intended to facilitate the comparability of financial statements and improve the quality and transparency of economic and financial information, favouring the increase of efficiency and integration, at least at a European level. The investigation of this paper supports the theory that before selecting the best principles to apply, it is necessary to make a cultural choice.
The aim of this paper is to evaluate the complex process of Accounting Harmonization, which involves the Italian Public Administration and the pressure to have a more transparent information system for the development of suitable accountability and comparability. Additionally, the paper examines the degree of diffusion of the IPSAS, the main characteristics of these principles and the difficulties face implementing them. These difficulties, lead to the creation of a set of European Public Sector Accounting Standards (EPSAS). The introduction of the new accounting rules is intended to facilitate the comparability of financial statements and improve the quality and transparency of economic and financial information, favouring the increase of efficiency and integration, at least at a European level. The investigation of this paper supports the theory that before selecting the best principles to apply, it is necessary to make a cultural choice.
Cite this paper
R. Jannelli and C. Tesone, "The Accounting Harmonization Process: Italian Public Principles and International Accounting Standards. Is It a Cultural Choice?," Open Journal of Accounting, Vol. 2 No. 4, 2013, pp. 115-121. doi: 10.4236/ojacct.2013.24017.
R. Jannelli and C. Tesone, "The Accounting Harmonization Process: Italian Public Principles and International Accounting Standards. Is It a Cultural Choice?," Open Journal of Accounting, Vol. 2 No. 4, 2013, pp. 115-121. doi: 10.4236/ojacct.2013.24017.
References
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[1] L. D’Alessio, “Logiche e Criteri di Armonizzazione Nelle Recenti Normative di Riforma Della Contabilità Pubblica,” Azienda Pubblica, Vol. 25, No. 1, 2012, pp. 23-39. [2] P. Ricci, “Il Potenziale Impatto delle Nuove Disposizioni Contabili sui Comportamenti Aziendali e sul Sistema Economico,” Azienda Pubblica, Vol. 25, No. 1, 2012, pp. 41-51 [3] L. Anselmi, A. Pavan and E. Reginato, “Cassa, Competenza Finanziaria e Competenza Economica: La Scelta Delle Basi Contabili in un Sistema Armonizzato di Contabilità Pubblica,” Azienda Pubblica Azienda Pubblica, Vol. 25, No. 1, 2012, pp. 53-67. [4] R. Jannelli, “L’azienda Regione, P. Ricci (a cura di) L’ economia Dell’azienda: Paradigmi e Declinazioni,” Giuffrè, Milano, 2012. [5] E. Caperchione and E.-R. Mussari, “Government Budgeting And Accounting Reform In Italy, AA.VV.—Government, Budgeting and Accounting Reform” Citic Publishing House Beijing (CHN), 2002, pp. 287-311. [6] M. Meneguzzo, “Ripensare la Modernizzazione Amministrativa e il New Public Management. L’esperienza Italiana: Innovazione dal Basso e Sviluppo Della Governance locale,” Azienda Pubblica, Vol. 10, No. 6, 1997, pp. 587-606. [7] B. Adam, R. Mussari and J. Rowan, “The Diversity of Accrual Policies in Local Government Financial Reporting: An Examination of Infrastracture, Art and Heritage Assets in Germany, Italy and the UK,” Financial Accountability and Management, Vol. 27, No. 2, 2011, pp. 107-133. http://dx.doi.org/10.1111/j.1468-0408.2011.00519.x [8] L. Canibano and A. Mora, “Evaluating the Statistical Significance of de Facto Accounting Harmonization: A Study of European Global Players,” The European Accounting Review, Vol. 9, No. 3, 2000, pp. 349-369. [9] A. Wildavsky, “The Politics of the Budgetary Process,” Brown and Co., Boston, 1974. [10] P. Onida, “Economia d’azienda,” Utet, Torino, 1971. [11] L. D’Alessio, “Le Aziende Pubbliche: Management Programmazione Controllo,” Liguori, Napoli, 2008. [12] E. Anessi Pessina, E. Cantù and N. Persiani, “Armonizzazione Contabile e Revisione dei Bilanci Nelle Aziende Sanitarie Pubbliche,” In: E. Cantù, Ed., Rapporto OASI 2011, L’aziendalizzazione Della Sanità in Italia, Milano, EGEA, 2011, pp. 469-494. [13] M. S. Giannini, “Autonomia (Saggio sui Concetti di Autonomia),” Rivista Trimestrale di Diritto Pubblico, Vol. II, 1951, pp. 851-883. [14] S. Cassese and D. Serrani “Regionalismo Moderno: Cooperazione tra Stato e Regioni e tra Regioni in Italia,” Le Regioni, 1980. [15] F. Amatucci, L’azienda Pubblica and P. Ricci, “L’economia Dell’azienda: Paradigmi e declinazioni,” Giuffrè, Milano, 2012. [16] Accounting Standards Board (ASB), “Heritage Asset: Can Accounting Do Better?” Discussion Paper, London, 2006. [17] International Federation of Accountants (IFAC), “International Public Sector Accounting Standards Board (IPSASB),” Elements of the Financial Statements of National Governments, Study 2. US, IPSASB, IFAC, 1993 [18] R. Hodges and H. Mellett, “Reporting Public Sector Financial Results,” Public Management Review, Vol. 5, No. 1, 2003, pp. 99-113. [19] T. Muller and M. Berger, “IPSAS Explained: A Summary of International Public Sector Accounting Standards,” Wiley, Hoboken, 2012 [20] C. Montagna, “Interdipendenza Economica Internazionale e Coordinamento delle Politiche Economiche: Una Rassegna” Rivista Internazionale di Scienze Sociali, Vol. 98, No. 1, 1990, pp. 57-82. [21] E. Caperchione, R. Mussari and J. L. Chan, “Models of Public Budgeting and Accounting Reform,” OECD, Organisation for Economic Cooperation and Development Paris (FRA), Vol. 2, Suppl. 1, 2002, pp. 305-331 [22] C. Clark, “The Users of Annual Reports of Government Departments,” Accountability Symposium, Accounting Association of Australia and New Zealand Conference, New Zealand, July 6, 2002. [23] A. Bergmann, “The Influence of the Nature of Government Accounting and Reporting in Decision Making: Evidence from Switzerland,” Public Money & Management, Vol. 32, No. 1, 2012, pp. 15-20. [24] I. Lapsley, R. Mussari and G. Paulsson, “On the Adoption of Accrual Accounting in the Public Sector: A Self-Evident and Problematic Reform,” European Accounting Review, Vol. 18, No. 4, 2009, pp. 719-723. http://dx.doi.org/10.1080/09638180903334960 [25] A. Bergmann, “Public Sector Financial Management,” Prentice Hall Financial Times, Harlow, England, New York, 2009. [26] F. Capalbo, “Il Contrasto tra Accountability Pubblica e Rendicontazione in Stile Privatistico Nelle Società Partecipate Dalle Pubbliche Amministrazioni,” In: F. Capalbo, Ed., L’applicazione della Contabilità Economica nel Settore Pubblico: Aspettative, risultati e criticità, Giappichelli, Torino, 2012 [27] J. L. Chan, “IPSAS and Government Accounting Reform in Developing Countries,” In: E. Lande and J.-C. Scheid, Eds., Accounting Reform in the Public Sector: Mimicry, Fad or Necessity, 2006, pp. 1-15. [28] J. L. Chan, “Government Accounting: An Assessment of Theory, Purposes and Standards” Public Money and Management, Vol. 3, No. 9, 2003, pp. 13-19. [29] J. Perrin, “From Cash to Accruals in 25 Years,” Public Money & Management, Vol. 18, No. 2, 1998, pp. 7-10. [30] F. G. Grandis and G. Mattei, “Is There a Specific Accrual Basis Standard for the Public Sector? Theoretical Analysis and Harmonization of Italian Government Accounting,” Open Journal of Accounting, Vol. 1, No. 2, 2012, pp. 27-37. [31] G. Zanda, “La Grande Impresa. Caratteristiche Strutturali e di Comportamento,” Giuffrè, Torino, 1974. [32] J. Guthrie, “Application of Accrual Accounting in the Australian Public Sector—Rhetoric or Reality?” Financial Accountability & Management, Vol. 14, No. 1, 1998, pp. 1-19. http://dx.doi.org/10.1111/1468-0408.00047 [33] F. Aceituno, J. Valeriano, R. Bolivar and M. Pedro, “The Conceptual Framework Concept and the Allocation of Incomes in the Consolidated Entity: Its Impact on Financial Ratios,” International Journal of Commerce and Management, Vol. 16, No. 2, 2006, pp. 95-115. [34] G. Migliaccio “Gli Schemi di Rendicontazione Economico-Patrimoniale Degli Enti Locali. Evoluzione, Comparazioni e Prospettive,” Milano, FrancoAngeli, 2010, pp 139-167. [35] R. Jannelli, “Le Garanzie Offerte Dalla Revisione nei Sistemi di Contabilità Economica,” In F. Capalbo, Ed., L’applicazione Della Contabilità Economica nel Settore Pubblico: Aspettative, Risultati e Criticità, Giappichelli, Torino, 2012, pp. 243-268. [36] W. Goethe, “Die Wahlverwandtschaften,” J. G. Cottaische Buchhandlung, Berlin, 1809.