Implementation of IPSAS in Mozambique - challenges and perspectives for the Ministry of Economy and Finance (2020 – 2024)

Abstract

The great importance of the adoption of IPSAS comes from the fact that standardization now allows for equitable and more appropriate evaluations, which improves mutual trust based on accounting information produced by countries. However, the implementation of IPSAS in any accounting faces challenges inherent to the standards in any accounting unit. These challenges are also faced by Mozambique over time as a country committed to the effective implementation of International Public Sector Accounting Standards (IPSAS) to be aligned with the world. It should be noted that Mozambique is one of the few countries in the world that has all its public accounting computerized and managed by an electronic system e-SISTAFE. The central research question seeks to understand what are the main challenges faced by Mozambique in adopting the International Public Sector Accounting Standards (IPSAS). The objectives of the study are multiple, the evaluation of the current state of IPSAS implementation in national public accounting; the identification of the main motivations for the adoption of the standards and the results achieved so far and the advantages that the country intends to acquire with such implementation. The study concluded that the implementation of IPSAS in Mozambique is ongoing and is recognized by managers as being crucial for increasing transparency in accountability. However, there are still challenges of various kinds observed throughout the process to be highlighted: the scarcity of financial and human resources, the lack of technical knowledge and the need for political support. Despite these obstacles, the expected benefits, such as improving the quality of financial information and promoting trust in public institutions, justify continued efforts towards the full adoption of IPSAS in Mozambique.