The International Public Sector Accounting Standards (IPSAS) refer to those accounting standards that have been developed by the IPSAS board for use in the public sector. Notably, IPSAS is supposed to be used by public entities in their preparation, presentation, and disclosure of financial statements. The IFRS played an important role in the development of the IPSAS. The main feature of these accounting standards is that they are customized to satisfy the needs of public sector financial operations and reporting. The IPSAS are also made for government business enterprises (GBE) as well as the public sector.
The IPSAS can be used in the Saudi government accounting system and positively impact the Saudi economy, more so in achieving the Vision 2030. The main objective of having IPSAS in an economy is that it increases the quality of financial reporting by public sector entities (Adjei, 2021). Secondly, it helps these organizations make better resource allocations. This is the foundation for promoting accountability and openness in the public sector. The IPSAS has been applied in over 100 nations across the world and is therefore important in Saudi Arabia.
The adoption of IPSAS in Saudi Arabia’s economy has so far helped in achieving the general need for an ecosystem towards the attainment of Vision 2030. Some of the objectives include helping to improve transparency in government activities, which improves overall performance (Deloitte, 2022). The adoption of these accounting standards will improve accountability when preparing and presenting governmental financial statements. Another advantage is that the adoption of IPSAS will enhance monitoring of the existence and value of assets and liabilities. This is crucial in preventing the misappropriation of assets in government facilities. The adoption of IPSAS can promote the matching of revenues and expenses. This assists public organizations in making better decisions by leveraging financial information prepared under the IPSAS.
The adoption of IPSAS will definitely ensure that it fulfills Saudi Arabia’s vision 2030 of having a vibrant society and thriving economy (Deloitte, 2022). This will be achieved by promoting decision-making abilities and a comprehensive overview of financial management. It will also enhance Saudi Arabia’s capabilities in the economic, social, and financial fields of the public s