Cash Reporting in Developing Countries: The Case of Nepalese Central Government

Pawan Adhikari and Frode Mellemvik argue that developing countries have few alternatives other than to accept the rules and standards developed and prescribed by international standard setters, so as to ensure external legitimacy and financial support. Their paper explores Nepal’s move towards the implementation of International Public Sector Accounting Standards (IPSAS). This study shows an interesting case of how public sector accounting in developing countries is being influenced by international organizations, particularly the World Bank and professional accounting institutions. However, it is not clear from this study that such an approach is ensuring that public financial management reforms are focussed on the key areas in Nepal.

Abstract
International organizations such as the International Accounting Standards Board (IASB), the International Federation of Accountants (IFAC), and the International Organization of Supreme Audit Institutions (INTOSAI) have in recent years acquired accounting expertise by gaining the power to command agendas and standards. The impact of these organizations in the accounting world seems greater and more influential in developing countries. Developing countries are left with few alternatives other than to accept the rules and standards developed
and prescribed by these organizations, so as to ensure external legitimacy and financial support. In the context of developing countries, the implementation of accounting standards is seen as imperative in order to avert the possible financial and economical crisis. This paper aims to explore Nepal’s move towards IPSASs, contributing to the literature concerning the role of international organizations in disseminating IPSASs in the developing world.
Adhikari, Mellemvik IPSASs in Developing Countries a Case of Nepalese Central Government