The first steps towards harmonizing public sector accounting for European Union member states: strategies and perspectives

Abstract

This paper analyses the process that led the European Commission to the decision to develop European Public Sector Accounting Standards (EPSAS) for harmonizing public sector accounting practices within the European Union. The paper finds that there was limited scope in terms of stakeholder participation in the public consultation that served as a basis for the decision. In addition, the decision to adopt EPSAS for EU member states raises questions on the relationship between regional and global governance in the area of public sector accounting.

Keywords:

• Accounting harmonization
• EPSAS
• IPSAS
• public sector accounting
• regionalization

Notes

* A number of studies have attempted to classify public sector accounting practices in EU member states (see Ernst & Young, 2012; PricewaterhouseCoopers, 2014; Brusca et al., 2015). Slight differences in the findings highlight the difficulty of accurately classifying public sector accounting practices.

** Note that Latvia's central government applies modified accrual accounting but, where applicable, it refers to IPSAS.