The debt crisis pointed to the need of reforming financial management in numerous EU member states. Nowadays, every country uses different accounting standards in practice. Data manipulations have given rise to a confidence crisis in the whole European Community, which has translated into the weakening economic development. Uniform and coherent standards would enable a more effective monitoring of the financial standing of individual countries and the whole European Union. The objective of the conference organised at NIK was to present knowledge and experience concerning implementation of the International Public Sector Accounting Standards.
Statements of the conference participants
World Bank Conference
The International Public Sector Accounting Standards (IPSAS) are high-quality financial reporting norms. They are accrual-based and modelled on the International Financial Reporting Standards but adjusted to the public sector requirements. About 40 countries have already adopted them or are doing so at the moment, including Lithuania, Czech Republic and Slovakia. These standards form the basis of the accounting system of such organisations as: United Nations Organisation, NATO or Interpol.
The issue of costs of implementing the accrual-based standards was addressed repeatedly during the experts’ debate. And the costs are really high - tens or even hundreds of millions of euro. This is one of the biggest obstacles in implementing the accounting reform in following countries. However, according to Thomas Müller-Marqués Berger - IPSAS Board Member - as inhabitants of the crisis-ridden Europe we should rather ask how high the costs would be if we abandoned changes. And these may be much higher.
The conference held on 7 June at the NIK headquarters was attended by representatives of the World Bank, Ministry of Finance, Ministry of State Treasury, Supreme Audit Office, Central Statistical Office, universities of economics and local governments. Guests from France, Germany, Austria and the Netherlands talked about their experience with implementing IPSAS.
