The International Harmonization Process of Public Sector Accounting in Portugal: The Perspective of Different Stakeholders

Abstract

This paper investigates the reform of public accounting in Portugal through the IPSAS adoption highlighting the perception of different stakeholders. Two competing theories (NPM and the institutional theory) are used to understand public accounting changes within the Portuguese context. In general, different stakeholders agree with the favorable moment and the context of the reform. The context of financial crises and the great external pressures to cut public deficits and to improve the quality of financial information seem to be the most important factors to stimulate changes in public accounting. In addition, stakeholders recommend the use of different strategies to ensure success.

Keywords:

• public accounting reform
• Portuguese context
• institutional theory
• new public management (NPM)
• stakeholders’ perspective

Notes

¹ This EUROSTAT final report is publicly retrieved from http://epp.eurostat.ec.europa.eu/portal/page/portal/government_finance_statistics/documents/study_on_public_accounting_and_auditing_2012.pdf. The Portuguese situation and the context of the reform are available on pages 312–324.

² Document publicly retrieved from http://www.portugal.gov.pt/pt/os-ministerios/ministerio-das-financas/documentos-oficiais/20140430-mf-deo.aspx.

³ In this article, we focus on the isomorphism perspective of the institutional approach (coercive forces, normative forces, and mimetic forces).

⁴ This theoretical approach is based on two competing approaches of the organizational life similar to those used by Lapsley & Pallot (2000) in the study of organizational changes in local government.

⁵ The direct participation of an author of the article occurs between 1997 and 2011, in the committee that worked in the first public accounting reform, and since 2012-until now in the new committee that is working on the new public accounting model based on the IPSAS.

⁶ A first Committee for the public sector was created for the period 1998–2012, under the first process of change introduced in public accounting since 1990. However, a new structure was created in 2012 by the decree-law 134/2012 in order to conduct the public accounting reform toward the IPSAS adoption. It was created under the organizational structure of the Ministry of Finance.