International Accounting Standards in the Public Sector: A Comparative Study of Greece and European Countries ()
1. Introduction
International accounting standards play a crucial role in ensuring financial transparency and accountability in the public sector. These standards provide a framework for consistent and comparable financial reporting practices, which are essential for informed decision-making by stakeholders. The adoption of international accounting standards in the public sector has become a global trend, driven by the need to enhance financial management practices, increase public trust, and facilitate international comparability (Biondi & Zallone, 2019) .
International Accounting Standards (IAS) set out common rules that make financial statements of companies worldwide consistent, transparent and comparable. They determine how a company should keep and report its accounts and specify the types of transactions and other events that have a financial impact. Essentially, the purpose of developing IAS is to create a common accounting language so that companies and their financial reporting are consistent and reliable across companies and across countries (Garefalakis & Dimitras, 2016; Toudas et al., 2022) .
Greece, as a member of the European Union, faces specific challenges in aligning with international accounting standards due to its unique economic and political context. The country has undergone significant financial turmoil in recent years, resulting in increased scrutiny of its public sector financial reporting and management practices. The adoption and implementation of international accounting standards in Greece are critical in addressing these challenges and improving financial transparency (Bouka & Manes-Rossi, 2020) .
The objectives of this study are twofold. Firstly, to assess the extent of adoption and implementation of international accounting standards in the Greek public sector. Secondly, to compare the adoption and implementation of these standards in Greece with other European countries. By conducting a comparative analysis, we aim to identify similarities, differences, challenges, and opportunities associated with the adoption of international accounting standards in the public sector across Greece and Europe.
In addition to addressing the challenges and opportunities associated with the adoption of international accounting standards in the public sector, this study aims to contribute to the existing body of knowledge by introducing a novel perspective. While prior research has extensively explored the adoption of international accounting standards in various contexts, there is a dearth of comprehensive studies focusing specifically on the Greek public sector. By conducting an in-depth analysis of the adoption and implementation of international accounting standards in Greece and comparing it with other European countries, this research fills a crucial gap in the literature (Carmichael et al., 2018) .
Furthermore, this study introduces a nuanced approach by considering Greece’s unique economic and political context. The country’s recent financial turmoil and increased scrutiny of its public sector financial reporting practices highlight the need for a tailored examination that accounts for the specific challenges faced by Greece. By incorporating these contextual factors, this research sheds light on the implications of international accounting standards adoption in Greece and offers practical insights for policymakers, practitioners, and stakeholders.
Overall, the innovative aspects of this study lie in its specific focus on the Greek public sector, its comparative analysis with other European countries, and its consideration of Greece’s unique economic and political context. By providing a comprehensive examination of the adoption and implementation of international accounting standards, this research aims to contribute significantly to the field of public sector financial management and accountability (Christiaens, Manes-Rossi, & Scagnelli, 2016) .
2. Historical Background and Adoption of International Accounting Standards
2.1. Historical Context of International Accounting Standards in the Public Sector
International accounting standards in the public sector have a rich historical context, shaped by the need for transparency, accountability, and comparability in financial reporting. The globalization of economies and the interconnectedness of nations have underscored the significance of consistent financial reporting practices across borders. This section provides an overview of the historical development of international accounting standards in the public sector, highlighting key milestones and the role of international organizations in their establishment and promotion (Lantto, 2019) .
The origins of international accounting standards can be traced back to the early 20th century when efforts were made to harmonize accounting practices across countries. The establishment of the International Federation of Accountants (IFAC) in 1977 marked a significant milestone in the development of international accounting standards. IFAC, as a global organization representing the accounting profession, has been instrumental in promoting consistent and high-quality accounting practices worldwide.
The need for specific accounting standards in the public sector gained prominence in the late 20th century. Public sector entities, including governments, governmental agencies, and other public sector organizations, faced unique challenges in financial reporting due to their diverse objectives, stakeholders, and sources of funding. As a result, the International Public Sector Accounting Standards Board (IPSASB) was established in 1997 to develop international accounting standards specifically for the public sector (Cuganesan, Guthrie, & Ward, 2018) .
IPSASB, under the auspices of IFAC, has played a crucial role in setting accounting standards for public sector entities. The board comprises representatives from various countries, accounting bodies, and international organizations, ensuring a diverse and inclusive approach to standard-setting. Since its establishment, IPSASB has developed a comprehensive set of standards known as the International Public Sector Accounting Standards (IPSAS) (IFAC, 2020) . These standards provide guidance on financial reporting, including measurement, presentation, and disclosure, for public sector entities (Ebrahim & Ramiah, 2019) .
The development and adoption of international accounting standards in the public sector have been driven by several factors. Firstly, globalization and the interconnectedness of economies have necessitated the harmonization of accounting practices to facilitate the comparability of financial information across borders. International accounting standards provide a common framework for financial reporting, enabling users to make informed decisions and assess the financial performance of public sector entities (Gendron & Cooper, 2017) .
Secondly, the need for transparency and accountability in the public sector has been a driving force behind the development of international accounting standards. Public sector entities have a responsibility to report their financial activities and use of public funds in a transparent manner. International accounting standards provide a robust framework that enhances the credibility and reliability of financial information, promoting public trust and accountability.
Furthermore, the establishment of international organizations such as the International Monetary Fund (IMF), World Bank, and United Nations (UN) has also contributed to the development and adoption of international accounting standards in the public sector. These organizations recognize the importance of consistent financial reporting practices in ensuring financial stability, promoting good governance, and facilitating international cooperation (Kasim, Mohd Ghazali, & Ismail, 2020) .
Over the years, international accounting standards in the public sector have evolved and expanded to address emerging issues and challenges. The IPSASB regularly reviews and updates the IPSAS to reflect changes in accounting practices, regulatory requirements, and global developments. The board also collaborates with other standard-setting bodies, such as the International Accounting Standards Board (IASB), to align accounting standards and promote convergence between the public and private sectors (Lantto, 2019) .
In conclusion, the historical context of international accounting standards in the public sector highlights the evolution and importance of consistent financial reporting practices. The establishment of international organizations like IFAC and IPSASB has played a pivotal role in developing and promoting these standards. The globalization of economies, the need for transparency and accountability, and the recognition of international organizations have all contributed to the development and adoption of international accounting standards in the public sector (Kim & Yoon, 2019) .
2.2. Motivations for the Adoption of International Accounting Standards
The adoption of international accounting standards in the public sector is motivated by various factors that aim to enhance financial transparency, comparability, and accountability. This section explores the key motivations behind the adoption of these standards, highlighting their significance in improving decision-making, promoting accountability, evaluating the impact of public sector activities, and facilitating international harmonization (Knechel & Salterio, 2016) .
1) Transparency and Comparability of Financial Information: One of the primary motivations for the adoption of international accounting standards in the public sector is to enhance the transparency and comparability of financial information. Public sector entities play a vital role in the economy and utilize public funds to provide essential services and infrastructure. Transparent financial reporting enables stakeholders, including citizens, investors, and policymakers, to assess the financial health and performance of public sector entities accurately. It allows for a clear understanding of the allocation and utilization of public funds, ensuring accountability and responsible financial management (Kotak, 2019) .
By adopting international accounting standards, public sector entities can align their financial reporting practices with globally accepted principles and frameworks. These standards provide consistent guidelines for recognizing, measuring, and disclosing financial transactions, ensuring that financial information is presented in a standardized manner. As a result, stakeholders can compare financial statements across different public sector entities and jurisdictions, facilitating informed decision-making (Li & Moumen, 2020) .
2) Accountability: Enhancing accountability is another significant motivation for the adoption of international accounting standards in the public sector. Public sector entities have a responsibility to be accountable for their financial activities and the use of public funds. By adhering to international accounting standards, these entities are required to follow clear and standardized financial reporting principles, ensuring that financial information is accurate, complete, and transparent (Moura & Rodrigues, 2016) .
International accounting standards provide guidance on the presentation, disclosure, and measurement of financial transactions, enabling public sector entities to report their financial performance consistently. This transparency helps stakeholders hold public sector entities accountable for their financial decisions and activities, fostering public trust and confidence. It also facilitates effective oversight and scrutiny by regulatory bodies, auditors, and the public, ensuring that public resources are used efficiently and responsibly (Lantto, 2019) .
3) Evaluation of Economic, Social, and Environmental Impact: The adoption of international accounting standards in the public sector also enables the evaluation of the economic, social, and environmental impact of public sector activities. Beyond financial reporting, these standards incorporate broader reporting frameworks that consider non-financial aspects, such as environmental sustainability and social responsibility (OECD, 2019) .
International accounting standards, such as the International Integrated Reporting Framework and Sustainability Reporting Guidelines, provide guidance on reporting non-financial information. Public sector entities can disclose information related to their environmental initiatives, social programs, and economic contributions, allowing stakeholders to assess the overall impact of these entities on society and the environment. This broader reporting approach promotes sustainable development, responsible governance, and informed decision-making that takes into account both financial and non-financial factors (Lantto, 2019) .
4) International Harmonization: The adoption of international accounting standards in the public sector promotes international harmonization and alignment with global financial reporting practices. In an increasingly interconnected world, where economies and capital flows transcend national boundaries, the consistency and comparability of financial information become crucial (Parker & Guthrie, 2018) .
By adopting international accounting standards, countries can align their financial reporting practices with globally accepted principles. This alignment facilitates international comparability, allowing investors, analysts, and policymakers to make informed decisions and assess the financial performance of public sector entities across different jurisdictions. Harmonization also simplifies the exchange of financial information, reduces barriers to cross-border investment, and promotes international cooperation.
In conclusion, the adoption of international accounting standards in the public sector is driven by several motivations that aim to enhance financial transparency, comparability, and accountability. These standards facilitate the transparent reporting of financial information, enabling stakeholders to make informed decisions. They also promote accountability by providing a standardized framework for reporting public sector financial performance. Additionally, the adoption of international accounting standards allows for the evaluation of the economic, social, and environmental impact of public sector activities. Lastly, international harmonization is achieved by aligning financial reporting practices with globally accepted standards, facilitating comparability and international cooperation. Overall, the adoption of international accounting standards in the public sector contributes to improved financial management, responsible governance, and informed decision-making (Lantto, 2019) .
2.3. Role of International Organizations in Developing Accounting Standards
International organizations play a crucial role in the development and dissemination of international accounting standards in the public sector. These organizations, such as the International Public Sector Accounting Standards Board (IPSASB) and the International Federation of Accountants (IFAC), contribute to the establishment of consistent and high-quality accounting standards worldwide. This section explores the roles and contributions of these international organizations in developing accounting standards for the public sector (Janušauskaitė, 2018) .
1) The International Public Sector Accounting Standards Board (IPSASB):
The IPSASB is a standard-setting body that operates under the auspices of the IFAC. It is specifically responsible for developing International Public Sector Accounting Standards (IPSAS), which provide guidance on financial reporting, accounting policies, and measurement principles for the public sector (Salomia & Carataş, 2019) .
The IPSASB comprises representatives from various countries, national standard-setting bodies, and international organizations. This diverse composition ensures a balanced and inclusive approach to standard-setting, taking into account the needs and perspectives of different stakeholders in the public sector.
The IPSASB plays a critical role in developing and updating IPSAS to address emerging issues and align with global developments. The board conducts research, consults with stakeholders, and considers international best practices to develop robust and relevant accounting standards for the public sector. This includes areas such as financial reporting, presentation and disclosure, accounting policies, and measurement principles (Janušauskaitė, 2018) .
The IPSASB also collaborates with other standard-setting bodies, such as the International Accounting Standards Board (IASB), to promote convergence between public and private sector accounting standards. This collaboration ensures consistency and compatibility between international accounting standards and fosters harmonization in financial reporting practices.
Moreover, the IPSASB provides guidance and support to governments, standard-setting bodies, and other stakeholders in implementing IPSAS. It offers training programs, publications, and technical resources to enhance the understanding and application of IPSAS globally. These initiatives contribute to the successful adoption and implementation of international accounting standards in the public sector.
2) The International Federation of Accountants (IFAC):
The IFAC is a global organization that represents the accounting profession worldwide. It plays a pivotal role in promoting international accounting standards, including those specific to the public sector.
As the global advocate for the accountancy profession, the IFAC encourages its member bodies, which consist of professional accounting organizations from different countries, to adopt and promote international accounting standards. The IFAC collaborates closely with its member bodies to facilitate the adoption and implementation of these standards at the national level (Janušauskaitė, 2018) .
The IFAC also advocates for the importance of high-quality financial reporting and the adoption of international accounting standards in the public sector. It engages with governments, regulatory bodies, and international organizations to highlight the benefits of adopting these standards, such as enhanced transparency, accountability, and comparability.
Additionally, the IFAC provides support and guidance to its member bodies in developing their own accounting standards for the public sector. It offers technical assistance, capacity-building programs, and best practice sharing to facilitate the development and implementation of robust accounting frameworks at the national level (Janušauskaitė, 2018) .
Through its extensive network and collaborations, the IFAC promotes the convergence of accounting standards globally, ensuring consistent financial reporting practices across borders. This convergence enhances international comparability and facilitates the exchange of financial information, supporting investment decisions and fostering economic growth.
In conclusion, international organizations, such as the IPSASB and the IFAC, play integral roles in developing and disseminating international accounting standards in the public sector. The IPSASB, as a standard-setting body, is responsible for issuing IPSAS, providing comprehensive guidance on financial reporting in the public sector. The IFAC, as the global organization for the accountancy profession, advocates for the adoption of international accounting standards and supports its member bodies in implementing these standards at the national level. Through their collaborative efforts, these organizations contribute to the establishment of consistent and high-quality accounting standards worldwide, promoting transparency, comparability, and accountability in the public sector (Janušauskaitė, 2018) .
2.4. Adoption and Implementation Process in Greece and European Countries
The process of adopting and implementing international accounting standards in Greece and European countries has been shaped by regional and national factors. Specifically:
Regional Factors
European Union (EU) Regulations: As a member of the European Union, Greece is subject to EU regulations regarding financial reporting and accounting practices. The EU has been actively promoting the convergence of accounting standards within its member states to facilitate comparability and transparency. The adoption of International Financial Reporting Standards (IFRS), which are recognized as the global standard, is a key component of this convergence process.
Harmonization Efforts: The EU has made significant efforts to harmonize accounting standards across member states. This includes the endorsement of IFRS for financial reporting by listed companies and the public sector. The EU directives and regulations serve as a framework for member states, including Greece, to align their national accounting standards with international accounting standards.
National Factors
Greece’s unique economic context, characterized by financial crises and economic instability in recent years, has influenced the adoption and implementation of international accounting standards. The need to restore financial stability and rebuild trust in the public sector has underscored the importance of transparent and comparable financial reporting practices.
Political Factors
The political landscape and government priorities in Greece can impact the pace and effectiveness of adopting international accounting standards. Political will, support, and commitment to financial reforms play a crucial role in driving the adoption process.
Legal and Institutional Framework: The legal and institutional framework in Greece, including the structure and responsibilities of regulatory bodies, accounting professional bodies, and government agencies, affects the adoption and implementation of international accounting standards. It is essential to have appropriate legislation, enforcement mechanisms, and institutional capacity to ensure effective compliance (Salomia & Carataş, 2019) .
Stakeholder Engagement: The involvement and engagement of various stakeholders, such as government entities, regulatory bodies, accounting professionals, public sector organizations, and financial statement users, are critical for successful adoption and implementation. Stakeholder consultations, training programs, and awareness campaigns can facilitate the acceptance and understanding of international accounting standards.
Capacity Building: Building the necessary capacity and expertise within the public sector to implement and comply with international accounting standards is crucial. This involves training and professional development programs for accountants and finance professionals, as well as the establishment of internal control systems and reporting mechanisms.
Overall, the adoption and implementation of international accounting standards in Greece and European countries are shaped by regional factors such as EU regulations and harmonization efforts, as well as national factors including the economic context, political landscape, legal and institutional framework, stakeholder engagement, and capacity building initiatives. Understanding and addressing these factors are essential for successful adoption and effective implementation of international accounting standards in the public sector.
In Europe, the European Union (EU) has played a significant role in harmonizing accounting practices across member states. The EU adopted International Financial Reporting Standards (IFRS) for the private sector, while encouraging the adoption of IPSAS for the public sector. Greece, as an EU member, has faced challenges in aligning its public sector accounting practices with international standards due to its economic and political context (Tepalagul & Lin, 2015) .
In Greece, the adoption of international accounting standards in the public sector began in the early 2000s. The Ministry of Finance, in collaboration with professional accounting bodies, developed a roadmap for implementing IPSAS. The process involved the translation of IPSAS into Greek, training programs for public sector accountants, and the establishment of a regulatory framework to ensure compliance. The adoption of IPSAS in Greece has aimed to enhance financial reporting, increase transparency, and improve the quality of public sector financial information.
The adoption and implementation of international accounting standards in other European countries have followed similar patterns, with variations based on national regulatory frameworks and cultural factors. Some countries have fully implemented IPSAS, while others have adopted modified versions or have made progress towards convergence with these standards. The implementation process has involved the issuance of national accounting regulations, training programs, and the establishment of monitoring and enforcement mechanisms (Tepalagul & Lin, 2015) .
This section provides a historical overview of international accounting standards in the public sector, highlighting their significance in promoting financial transparency and comparability. It discusses the motivations behind their adoption and the role of international organizations in their development. Furthermore, it explores the process of adoption and implementation of these standards in Greece and European countries, emphasizing the challenges and regulatory frameworks involved. Understanding the historical background and adoption process is essential to evaluate the impact of international accounting standards in the public sector and to identify areas for improvement in Greece and across Europe (Tepalagul & Lin, 2015) .
3. Comparative Analysis of International Accounting Standards in Greece and Europe
3.1. Adoption and Implementation of International Accounting Standards in Greece
The adoption and implementation of international accounting standards in the public sector in Greece have undergone significant progress in recent years. The Greek government has recognized the importance of aligning with global standards to enhance financial transparency and accountability. This section examines the process of adoption and implementation, focusing on the efforts made to conform to International Public Sector Accounting Standards (IPSAS) and the challenges encountered (Toudas, Goula, Menexiadis, Boufounou, & Garefalakis, 2022) .
Translation and Roadmap for Implementation: The journey towards adopting international accounting standards in Greece began with the translation of IPSAS into Greek. This step was essential to ensure that the standards are accessible and understandable to public sector accountants and stakeholders. Translating IPSAS facilitates the application of the standards and ensures consistent interpretation across the public sector.
In addition to translation, Greece developed a roadmap for the implementation of IPSAS. The roadmap provided a strategic framework and timeline for the adoption and integration of international accounting standards in the public sector. It outlined the necessary steps, such as training programs, capacity-building initiatives, and the establishment of regulatory frameworks to support the implementation process (Ballas et al., 2019) .
2) Financial Reporting Practices: Greece has made significant efforts to conform to the financial reporting practices prescribed by IPSAS. One of the key changes in adopting IPSAS is the shift from cash-based accounting to accrual accounting principles. Accrual accounting provides a more accurate representation of financial performance by recognizing revenues and expenses when they are incurred, rather than when cash is received or paid.
By adopting accrual accounting, Greece has improved the quality of its financial statements in the public sector. Financial information is now reported on a comprehensive basis, including assets, liabilities, revenues, and expenses. This shift enhances the transparency and comparability of public sector financial information, enabling stakeholders to make more informed decisions.
Furthermore, Greece has implemented measures to enhance the disclosure requirements in financial reporting. This includes providing more detailed information on significant accounting policies, contingent liabilities, and related party transactions. The increased transparency in financial reporting contributes to a better understanding of the financial position and performance of public sector entities in Greece (Ballas et al., 2019) .
3) Challenges and Areas for Improvement: Despite the progress made, Greece faces several challenges in the adoption and implementation of international accounting standards in the public sector. These challenges stem from various factors, including cultural, institutional, and technical barriers.
One of the key challenges is the need to strengthen internal controls in public sector entities. Robust internal controls are essential for ensuring the accuracy, reliability, and integrity of financial information. Greece needs to enhance its control environment to minimize the risk of fraud, errors, and misstatements in financial reporting. This requires establishing effective governance structures, implementing appropriate control procedures, and conducting regular audits (Salomia & Carataş, 2019) .
Capacity-building among public sector accountants is another area that requires attention. Adequate training and professional development programs are crucial to ensure that public sector accountants have the necessary knowledge and skills to apply international accounting standards effectively. Investing in continuous education and skill development will contribute to the successful implementation and ongoing compliance with IPSAS.
Addressing cultural and institutional barriers is also important for the effective adoption of international accounting standards in Greece. Cultural factors, such as resistance to change and a lack of awareness about the benefits of accrual accounting, can impede the adoption process. It is essential to create awareness, provide education, and foster a culture of transparency and accountability to overcome these barriers.
Institutional factors, including the alignment of regulatory frameworks and the coordination among relevant authorities, also play a role in the successful implementation of international accounting standards. Greece needs to ensure that the necessary regulatory frameworks are in place to support the application of IPSAS. This includes establishing clear guidelines, monitoring compliance, and providing guidance to public sector entities.
4) Opportunities for Improvement: While challenges exist, the adoption and implementation of international accounting standards in Greece also present opportunities for improvement. By aligning with global standards, Greece can enhance its financial transparency and accountability, thereby strengthening public trust in the government’s financial management.
The adoption of accrual accounting principles provides an opportunity to improve decision-making processes in the public sector. Accrual accounting provides a more comprehensive view of the financial impact of public sector activities, enabling policymakers to make informed decisions based on reliable and timely financial information (Ballas et al., 2019) .
Furthermore, the adoption of international accounting standards facilitates comparability and benchmarking of financial performance across different public sector entities and countries. This allows Greece to assess its financial management practices in relation to international best practices and identify areas for further improvement.
In conclusion, the adoption and implementation of international accounting standards in the public sector in Greece have made significant progress. Efforts to conform to IPSAS, including the adoption of accrual accounting principles and improved financial reporting practices, have enhanced the transparency and comparability of public sector financial information. However, challenges remain, such as strengthening internal controls, enhancing capacity-building, and addressing cultural and institutional barriers. By addressing these challenges and capitalizing on the opportunities for improvement, Greece can further enhance its financial transparency, accountability, and decision-making processes in the public sector (Ballas et al., 2019) .
3.2. Comparative Analysis of Adoption and Implementation in European Countries
A comparative analysis of international accounting standards in the public sector across European countries reveals both similarities and differences in their adoption and implementation. While the European Union (EU) encourages the adoption of International Public Sector Accounting Standards (IPSAS), the level of implementation varies among member states. Some countries have fully adopted IPSAS, while others have developed national accounting standards that are aligned with IPSAS. This section examines the comparative analysis of adoption and implementation, focusing on financial reporting practices, disclosure requirements, measurement standards, and consolidation principles (Ebrahim & De Villiers, 2019) .
1) Financial Reporting Practices: European countries have made significant progress in adopting accrual accounting principles and improving the quality of financial information in the public sector. Accrual accounting provides a more comprehensive and accurate representation of financial performance by recognizing revenues and expenses when they are incurred, rather than when cash is received or paid.
The adoption of accrual accounting principles enhances the transparency and comparability of financial information across European countries. It allows for a more comprehensive assessment of the financial position and performance of public sector entities, enabling stakeholders to make informed decisions (Ebrahim & De Villiers, 2019) .
2) Disclosure Requirements: While European countries have made efforts to enhance disclosure requirements, variations exist in the extent of disclosure across countries. Some countries have implemented comprehensive disclosure requirements that go beyond financial information, including the reporting of non-financial information such as environmental and social impact. These countries recognize the importance of providing a holistic view of public sector activities and their impact on society.
However, other countries have primarily focused on financial reporting and have not yet incorporated non-financial disclosures into their reporting frameworks. These variations in disclosure requirements can affect the level of transparency and the ability to assess the broader impact of public sector activities.
3) Measurement Standards: Measurement standards across European countries show variations based on national preferences and specific sectoral requirements. While IPSAS provides guidance on measurement bases such as historical cost, fair value, and present value, countries have adopted different approaches.
Some countries have embraced fair value measurement as a means to reflect the market value of assets and liabilities. This approach allows for greater transparency and provides a more realistic representation of the value of public sector resources.
However, other countries have opted for historical cost measurement, considering it a more reliable and conservative approach. Historical cost measurement focuses on the original cost of acquiring assets and does not take into account subsequent changes in market value (Ebrahim & De Villiers, 2019) .
4) Consolidation Principles: Consolidation principles applied by European countries also exhibit differences. Consolidation involves the aggregation of financial information from various entities to present a consolidated view of the financial position and performance of the public sector as a whole.
Some countries apply a broader scope for consolidation, including a wider range of entities and activities. This provides a comprehensive view of the entire public sector and facilitates a more accurate assessment of financial performance.
On the other hand, some countries apply more restrictive criteria for consolidation, limiting the scope to a narrower set of entities and activities. This approach may result in a less comprehensive view of the public sector and may not fully capture the financial impact of all relevant entities.
5) Harmonization Efforts: Despite the variations in the adoption and implementation of international accounting standards, there are ongoing efforts to harmonize financial reporting practices across European countries. The EU plays a crucial role in promoting convergence by encouraging member states to align their accounting standards with IPSAS.
Harmonization efforts aim to facilitate comparability of financial information, enhance transparency, and enable cross-country analysis. Harmonization also simplifies the financial reporting requirements for entities operating in multiple countries, reducing the burden of complying with different accounting standards (Ebrahim & De Villiers, 2019) .
In conclusion, the comparative analysis of international accounting standards in the public sector across European countries reveals both similarities and differences in their adoption and implementation. While efforts have been made to adopt accrual accounting principles and improve financial reporting practices, variations exist in disclosure requirements, measurement standards, and consolidation principles. Harmonization efforts by the EU and international organizations like the IPSASB are essential in promoting convergence and ensuring the comparability and transparency of financial information across European countries.
3.3. Challenges and Strategies in the Adoption and Implementation Process
The adoption and implementation of international accounting standards in the public sector, both in Greece and European countries, encounter common challenges. These challenges include the need for capacity-building and training programs, the establishment of effective monitoring and enforcement mechanisms, and the alignment of national regulatory frameworks with international standards. This section examines these challenges and explores the strategies employed to address them (Gomes & Rodrigues, 2020) .
1) Capacity-building and Training Programs: One of the key challenges in adopting and implementing international accounting standards is the need to enhance the skills and knowledge of public sector accountants. The transition from traditional cash-based accounting to accrual accounting requires a shift in mindset and the development of new competencies.
To address this challenge, training programs and professional development initiatives have been implemented. These programs aim to provide public sector accountants with the necessary knowledge and skills to understand and apply international accounting standards effectively. Training can encompass various approaches, including workshops, seminars, e-learning platforms, and professional certification programs (Gomes & Rodrigues, 2020) .
Collaboration between government agencies, professional accounting bodies, and international organizations is crucial in designing and delivering comprehensive training programs. These partnerships ensure the alignment of training content with international standards and promote the dissemination of best practices in the field of public sector accounting.
2) Monitoring and Enforcement Mechanisms: Another challenge in the adoption and implementation process is the establishment of effective monitoring and enforcement mechanisms. Compliance with international accounting standards requires consistent and accurate application by public sector entities.
To ensure compliance, regulatory bodies and oversight agencies play a vital role. These entities are responsible for monitoring financial reporting practices, conducting audits, and enforcing compliance with accounting standards. They may also provide guidance and support to public sector entities in their efforts to implement international accounting standards.
In addition, the involvement of professional accounting bodies and audit firms can contribute to the monitoring and enforcement process. Their expertise and independent verification of financial statements help ensure the reliability and integrity of financial information.
3) Alignment of National Regulatory Frameworks: The alignment of national regulatory frameworks with international accounting standards is a significant challenge. Each country may have its own regulatory framework and accounting practices that need to be harmonized with international standards.
To address this challenge, countries can establish national accounting regulations that incorporate the requirements of international accounting standards. These regulations provide guidance and specific instructions for the application of accounting principles and disclosure requirements in the public sector (Gomes & Rodrigues, 2020) .
The involvement of regulatory bodies and standard-setting organizations is crucial in the development and issuance of national accounting regulations. These entities can collaborate with international organizations, such as the IPSASB, to ensure consistency and alignment with global standards.
Moreover, the ongoing review and updating of national accounting regulations are necessary to keep pace with the evolving nature of international accounting standards. Regular updates help address emerging issues and promote continuous improvement in financial reporting practices.
In conclusion, the adoption and implementation of international accounting standards in the public sector face challenges that are common to both Greece and European countries. Capacity-building and training programs, the establishment of monitoring and enforcement mechanisms, and the alignment of national regulatory frameworks are crucial strategies employed to overcome these challenges. Collaboration between government agencies, professional accounting bodies, and international organizations is essential in addressing these challenges and promoting the successful adoption and implementation of international accounting standards in the public sector (Gomes & Rodrigues, 2020) .
3.4. Implications and Benefits of Adoption and Implementation
The adoption and implementation of international accounting standards in the public sector in Greece and European countries have significant implications and benefits. This section explores these implications and benefits, focusing on financial transparency and accountability, comparability of financial information, and integration of financial and non-financial information.
1) Financial Transparency and Accountability: One of the key implications of adopting international accounting standards is the enhancement of financial transparency and accountability in the public sector. These standards provide a standardized framework for financial reporting, ensuring that financial information is accurate, complete, and comparable.
By following international accounting standards, public sector entities are required to disclose relevant financial information in a transparent and consistent manner. This promotes trust and confidence among stakeholders, including citizens, investors, and international organizations. It allows for better decision-making, as stakeholders can rely on reliable financial information to assess the financial health and performance of public sector entities (Ebrahim & De Villiers, 2019) . Furthermore, the adoption of international accounting standards encourages the establishment of robust internal control systems and the application of sound accounting practices. This strengthens accountability within the public sector, as it ensures that resources are properly managed and financial transactions are accurately recorded.
2) Comparability of Financial Information: Another important implication of adopting international accounting standards is the improvement in the comparability of financial information across countries. These standards provide a common language for financial reporting, enabling stakeholders to compare the financial performance of public sector entities both within a country and internationally.
By adopting consistent measurement and presentation standards, international accounting standards facilitate international benchmarking and analysis. This allows policymakers, researchers, and investors to assess the financial performance of public sector entities across different jurisdictions. It supports evidence-based decision-making, as policymakers can evaluate the effectiveness of public sector programs and policies by comparing financial data (Ebrahim & De Villiers, 2019) . Moreover, the comparability of financial information enables countries to attract foreign investment and participate in global capital markets. Investors can make informed decisions based on comparable financial data, increasing the attractiveness of public sector entities for investment opportunities.
3) Integration of Financial and Non-Financial Information: The adoption of international accounting standards in the public sector supports the integration of financial and non-financial information. Traditionally, financial reporting has focused primarily on monetary aspects, such as revenues, expenses, and assets. However, societal demands have emphasized the importance of considering non-financial aspects, such as environmental and social impact.
International accounting standards provide guidance on the reporting of non-financial information, enabling public sector entities to disclose their environmental, social, and governance (ESG) performance alongside financial data. This promotes a more comprehensive assessment of the public sector’s performance and sustainability.
By integrating financial and non-financial information, stakeholders gain a better understanding of the broader impacts of public sector activities. This allows for more informed decision-making, as policymakers can evaluate the trade-offs between economic, social, and environmental objectives (Ebrahim & De Villiers, 2019) . Furthermore, the integration of financial and non-financial information aligns with the United Nations Sustainable Development Goals (SDGs) and supports the public sector’s contribution to sustainable development. It encourages public sector entities to consider the long-term implications of their actions and to adopt more sustainable practices.
In conclusion, the adoption and implementation of international accounting standards in the public sector have significant implications and benefits. They enhance financial transparency and accountability, improve the comparability of financial information, and support the integration of financial and non-financial information. These implications and benefits contribute to informed decision-making, increased stakeholder trust, and the promotion of sustainable development in Greece and European countries.
This section provides a comparative analysis of international accounting standards in the public sector in Greece and European countries. It highlights the similarities and differences in adoption and implementation, including challenges faced and strategies employed. The analysis covers key aspects such as financial reporting practices, disclosure requirements, measurement standards, and consolidation principles. Despite variations among countries, the adoption and implementation of international accounting standards in the public sector have contributed to enhanced financial transparency, comparability, and accountability. Addressing challenges and aligning national practices with global standards will further strengthen the benefits of these standards for Greece and European countries (Ebrahim & De Villiers, 2019) .
4. Impact of International Accounting Standards on Financial Reporting
4.1. Improved Transparency and Comparability of Financial Information
The adoption of international accounting standards in the public sector in Greece and European countries has significantly improved the transparency and comparability of financial information. This section explores how the implementation of these standards has enhanced transparency and comparability, focusing on the adoption of accrual accounting principles, standardized reporting frameworks, and the benefits for stakeholders (Gomes & Rodrigues, 2020) .
1) Adoption of Accrual Accounting Principles: One of the key elements of international accounting standards is the adoption of accrual accounting principles. Accrual accounting recognizes economic events and transactions when they occur, rather than when cash is received or paid. This shift from cash-based accounting to accrual accounting provides a more accurate depiction of the financial position and performance of public sector entities.
By adopting accrual accounting principles, public sector entities in Greece and European countries have been able to capture a more comprehensive view of their financial activities. This includes recognizing revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid. This approach provides stakeholders with a more accurate representation of the financial health of public sector entities and enables better decision-making (Gomes & Rodrigues, 2020) .
2) Standardized Reporting Frameworks: International accounting standards provide standardized reporting frameworks that promote consistency and comparability in financial reporting. These frameworks include guidelines on the presentation, measurement, and disclosure of financial information. By following these frameworks, public sector entities are able to prepare financial statements that adhere to common standards and formats.
The adoption of standardized reporting frameworks ensures that financial information is presented in a clear and understandable manner. This allows stakeholders, including investors, lenders, and citizens, to easily analyze and interpret financial statements. It also facilitates the comparison of financial information across different entities and jurisdictions. Furthermore, standardized reporting frameworks promote consistency in accounting policies and practices. This consistency enables stakeholders to make meaningful comparisons between public sector entities, as they are applying the same principles and measurement bases. It enhances the reliability and credibility of financial information and supports evidence-based decision-making (Gomes & Rodrigues, 2020) .
3) Benefits for Stakeholders: The improved transparency and comparability of financial information have numerous benefits for stakeholders in Greece and European countries. These benefits include:
a) Informed Decision-Making: Stakeholders, such as investors, lenders, and government agencies, rely on financial information to make informed decisions. The transparency provided by international accounting standards allows these stakeholders to assess the financial health and performance of public sector entities accurately. It helps them evaluate the risks and returns associated with their investments or funding decisions.
b) Accountability and Governance: Transparent financial reporting promotes accountability and good governance in the public sector. It allows citizens to hold public sector entities accountable for their financial performance and the use of public funds. The availability of reliable financial information enhances trust and confidence in public sector entities and their management.
c) Comparability and Benchmarking: The comparability of financial information enables stakeholders to benchmark the financial performance of public sector entities. Investors and lenders can compare entities within the same sector or across different jurisdictions to assess their relative performance and make investment decisions. It also facilitates peer comparisons and promotes best practices within the public sector.
d) Efficiency in Resource Allocation: Transparent financial information helps policymakers and government agencies allocate resources effectively. By having a clear understanding of the financial position and performance of public sector entities, policymakers can prioritize funding, allocate resources where they are most needed, and assess the impact of public sector activities.
e) Economic Stability and Growth: Transparent financial reporting contributes to economic stability and growth. It attracts investment, both domestically and internationally, by providing stakeholders with reliable and comparable financial information. This, in turn, stimulates economic activity, creates job opportunities, and supports sustainable development (Gomes & Rodrigues, 2020) .
In conclusion, the adoption of international accounting standards in the public sector in Greece and European countries has improved the transparency and comparability of financial information. The adoption of accrual accounting principles and standardized reporting frameworks has provided stakeholders with a clearer understanding of the financial position and performance of public sector entities. This enhanced transparency facilitates informed decision-making, promotes accountability and good governance, and supports economic stability and growth (Gomes & Rodrigues, 2020) .
4.2. Increased Reliability and Quality of Financial Information
The adoption of international accounting standards in the public sector has brought about increased reliability and quality of financial information in Greece and European countries. This section explores how the implementation of these standards has improved the reliability and quality of financial statements, focusing on the use of robust accounting principles, measurement bases, and the benefits for stakeholders (Kim & Kim, 2017) .
1) Robust Accounting Principles: International accounting standards provide a set of robust accounting principles that guide the recognition, measurement, and presentation of financial information. These principles ensure consistency and comparability in financial reporting across different public sector entities.
By adopting these accounting principles, Greece and European countries have improved the reliability of their financial statements. The standards require entities to adhere to specific rules and guidelines when recording transactions and events, reducing the potential for subjective judgments or biases. This consistency enhances the reliability of financial information and reduces the likelihood of misstatement or manipulation (Kim & Kim, 2017) .
2) Measurement Bases: International accounting standards also provide guidance on appropriate measurement bases for different financial items. These measurement bases, such as historical cost, fair value, and present value, ensure that financial information is recorded using reliable and relevant values.
The adoption of international accounting standards has resulted in the use of more appropriate measurement bases in the public sector. Entities now apply consistent measurement methods when valuing assets, liabilities, revenues, and expenses. This consistency enhances the comparability of financial information across entities and enables stakeholders to make meaningful comparisons.
Furthermore, the use of appropriate measurement bases improves the relevance of financial information. For example, the use of fair value measurements for certain financial instruments provides users with more up-to-date and market-based information. This enhances the decision-making process and allows stakeholders to assess the true economic value of public sector assets and liabilities (Kim & Kim, 2017) .
3) Disclosure Requirements: International accounting standards prescribe detailed disclosure requirements that aim to provide users of financial statements with relevant and comprehensive information. These requirements ensure transparency and enable stakeholders to have a complete understanding of the financial position and performance of public sector entities.
The adoption of international accounting standards has led to enhanced disclosure practices in Greece and European countries. Entities are now required to provide detailed information about significant accounting policies, contingent liabilities, related-party transactions, and other relevant disclosures. This level of transparency enables stakeholders to assess the risks and uncertainties associated with public sector entities’ financial activities.
Moreover, the improved disclosure practices facilitate better understanding and interpretation of financial information. Users can access the necessary information to analyze the financial statements and assess the impact of certain events or transactions on the entity’s financial performance and position. This transparency increases the reliability and usefulness of financial information for decision-making.
4) Benefits for Stakeholders: The increased reliability and quality of financial information have numerous benefits for stakeholders in Greece and European countries. These benefits include:
a) Informed Decision-Making: Stakeholders, such as investors, lenders, and government agencies, rely on reliable financial information to make informed decisions. The improved reliability and quality of financial statements enable stakeholders to assess the financial health, performance, and risks associated with public sector entities accurately. This, in turn, facilitates more informed investment decisions, resource allocation, and policy-making.
b) Trust and Confidence: Reliable financial information builds trust and confidence among stakeholders. The adoption of international accounting standards enhances the credibility of financial statements, as they are prepared using robust accounting principles and measurement bases. Stakeholders can have greater confidence in the accuracy and transparency of the reported financial information, which strengthens the relationships between public sector entities and their stakeholders (Kim & Kim, 2017) .
c) Comparability and Benchmarking: The increased reliability and quality of financial information support comparability and benchmarking across public sector entities. Stakeholders can compare the financial performance and position of different entities within the same sector or across jurisdictions. This enables benchmarking of best practices and facilitates the identification of areas for improvement or efficiency gains.
d) Accountability and Oversight: Reliable financial information enhances accountability and oversight in the public sector. Government agencies, auditors, and other oversight bodies can rely on accurate financial statements to assess compliance with laws, regulations, and internal controls. This promotes good governance, reduces the risk of financial mismanagement or fraud, and ensures accountability to taxpayers and citizens.
In conclusion, the adoption of international accounting standards in the public sector has resulted in increased reliability and quality of financial information in Greece and European countries. Through the use of robust accounting principles, appropriate measurement bases, and detailed disclosure requirements, the standards have improved the accuracy, transparency, and comparability of financial statements. These enhancements benefit stakeholders by enabling informed decision-making, fostering trust and confidence, facilitating comparability and benchmarking, and promoting accountability and oversight. The continued commitment to implementing and adhering to international accounting standards will further strengthen the reliability and quality of financial information in the public sector (Kim & Kim, 2017) .
4.3. Implications for Government Agencies and Accountability
The adoption of international accounting standards in the public sector has significant implications for government agencies. These standards promote a culture of accountability and fiscal responsibility by setting clear guidelines for financial reporting and management practices. Governments are required to adhere to these standards, ensuring that public sector entities are accountable for their financial performance and the management of public resources. This section explores the implications for government agencies and the role of international accounting standards in enhancing accountability (Tepalagul & Lin, 2015) .
1) Enhanced Financial Monitoring and Evaluation: The adoption of international accounting standards enables government agencies to monitor and evaluate the financial performance of public sector entities more effectively. These standards provide a standardized framework for financial reporting, ensuring consistency, comparability, and accuracy of financial information. Government agencies can access reliable and transparent financial statements, allowing them to assess the financial health, efficiency, and effectiveness of public sector entities.
By having access to comprehensive financial information, government agencies can identify areas of improvement and allocate resources more effectively. They can evaluate the financial sustainability of public sector programs and projects, ensuring that resources are allocated to initiatives that yield the highest value and meet the needs of citizens. Moreover, the ability to compare financial performance across entities and over time facilitates benchmarking and the identification of best practices (Tepalagul & Lin, 2015) .
2) Strengthened Accountability and Transparency: International accounting standards play a crucial role in strengthening accountability and transparency in the public sector. Governments are required to prepare and disclose financial statements that conform to these standards, providing stakeholders with accurate and reliable information about the financial position, performance, and cash flows of public sector entities.
The adoption of international accounting standards promotes a culture of accountability within government agencies. It establishes clear expectations for financial reporting and management practices, ensuring that public sector entities are held responsible for their financial performance and the use of public resources. The availability of reliable financial information enhances the government’s ability to demonstrate transparency and accountability to citizens, fostering public trust and confidence (Tepalagul & Lin, 2015) .
Furthermore, international accounting standards encourage the disclosure of relevant and meaningful information beyond financial statements. This includes the reporting of non-financial information, such as environmental and social impact, providing a more comprehensive view of the public sector’s activities and their effects on society. This increased transparency allows stakeholders to assess the broader impact of public sector entities and holds them accountable for their social and environmental responsibilities.
3) Improved Governance and Risk Management: The adoption of international accounting standards supports improved governance and risk management practices in government agencies. These standards provide guidance on internal controls, risk assessment, and the management of financial risks. By adhering to these guidelines, government agencies can enhance their financial governance frameworks, mitigate financial risks, and improve the reliability and integrity of financial reporting.
International accounting standards also promote a focus on risk management and the identification of potential financial vulnerabilities. Governments are required to assess and disclose significant risks and uncertainties, allowing for informed decision-making and proactive risk mitigation strategies. This emphasis on risk management contributes to the overall financial stability and sustainability of public sector entities (Tepalagul & Lin, 2015) .
4) Compliance and Enforcement: The adoption of international accounting standards necessitates the establishment of compliance and enforcement mechanisms within government agencies. These mechanisms ensure that public sector entities adhere to the prescribed accounting standards and reporting requirements. Compliance with international accounting standards is critical to maintaining the credibility and reliability of financial information.
Government agencies play a vital role in monitoring and enforcing compliance with international accounting standards. This includes conducting audits, inspections, and reviews of financial statements to ensure accuracy and adherence to the standards. These compliance and enforcement activities contribute to the overall effectiveness of the accounting standards and promote consistency and comparability in financial reporting across public sector entities.
In conclusion, the adoption of international accounting standards has significant implications for government agencies, particularly in enhancing accountability and fiscal responsibility. These standards enable governments to monitor and evaluate the financial performance of public sector entities, allocate resources effectively, and assess the impact of public policies and programs. Furthermore, international accounting standards strengthen accountability and transparency by setting clear guidelines for financial reporting, promoting a culture of responsibility and trust. They also support improved governance and risk management practices, and ensure compliance with prescribed accounting standards through the establishment of compliance and enforcement mechanisms. By adhering to international accounting standards, government agencies can enhance their financial monitoring and evaluation capabilities, strengthen accountability, and foster public trust and confidence (Tepalagul & Lin, 2015) .
4.4. Benefits for Investors, Creditors, and Citizens
The adoption of international accounting standards in the public sector provides numerous benefits for investors, creditors, and citizens. Investors and creditors rely on financial information to assess the creditworthiness and investment potential of public sector entities. The adoption of international accounting standards enhances the comparability and reliability of financial statements, enabling investors and creditors to make more informed decisions (Janušauskaitė, 2018) .
Citizens, as the ultimate beneficiaries of public services, also benefit from the adoption of international accounting standards. These standards promote the efficient and effective use of public resources, ensuring that citizens receive value for money. Transparent and reliable financial information allows citizens to hold government agencies accountable for their financial management and expenditure decisions (Janušauskaitė, 2018) .
4.5. Challenges and Continuous Improvement
While the adoption of international accounting standards in the public sector has brought about significant improvements in transparency, comparability, and accountability, it is not without challenges. The implementation of these standards requires overcoming various obstacles and continuously striving for improvement. This section discusses the challenges faced in adopting and implementing international accounting standards and emphasizes the need for continuous improvement (Kim & Kim, 2017) .
1) Capacity-Building and Competence: One of the key challenges in adopting international accounting standards is the need to build the capacity and competence of public sector accountants. The transition to accrual accounting and the application of complex measurement standards require a solid understanding of accounting principles and practices. Governments need to invest in training programs and professional development initiatives to enhance the skills and knowledge of public sector accountants. This includes providing opportunities for accountants to gain practical experience and stay updated with the evolving accounting standards.
Continuous improvement in capacity-building is crucial to ensure that public sector accountants have the necessary expertise to implement and comply with international accounting standards effectively. Governments can collaborate with professional accounting bodies and educational institutions to develop specialized training programs and certifications tailored to the needs of the public sector. Regular performance evaluations and competency assessments can also help identify areas for improvement and provide targeted training opportunities (Kim & Kim, 2017) .
2) Cultural and Institutional Barriers: The adoption and implementation of international accounting standards may face cultural and institutional barriers in some countries. Different cultural contexts, administrative structures, and organizational cultures can affect the acceptance and implementation of these standards. Resistance to change, lack of awareness, and bureaucratic inertia can pose significant challenges.
To address these barriers, it is essential to engage stakeholders at all levels, including government officials, public sector employees, and citizens. Awareness campaigns and communication strategies can help build support for the adoption of international accounting standards by highlighting the benefits and addressing misconceptions. Governments can also encourage the exchange of best practices and experiences among countries to showcase successful implementations and demonstrate the positive impact of these standards (Kim & Kim, 2017) .
3) Compliance and Enforcement: Ensuring ongoing compliance with international accounting standards is another challenge in the adoption process. Governments need to establish robust monitoring and enforcement mechanisms to ensure that public sector entities adhere to the prescribed accounting standards. This requires the development of regulatory frameworks, the establishment of oversight bodies, and the implementation of audit and review procedures.
Continuous improvement in compliance and enforcement mechanisms is necessary to address emerging issues and maintain the credibility of financial reporting. Governments can strengthen their regulatory frameworks by incorporating lessons learned from implementation experiences and international best practices. Regular audits, inspections, and reviews of financial statements can help identify areas of non-compliance and encourage public sector entities to meet the prescribed standards. Collaboration with international organizations, such as the International Public Sector Accounting Standards Board (IPSASB) and the International Federation of Accountants (IFAC), can provide guidance and support in enhancing compliance and enforcement efforts (Kim & Kim, 2017) .
4) Alignment with Evolving Standards: International accounting standards are subject to continuous development and updates to keep pace with changing business practices and financial reporting requirements. Governments adopting these standards must ensure ongoing alignment with the latest versions and amendments. This requires regular review and update of national regulatory frameworks to incorporate changes in international accounting standards.
To address this challenge, governments can establish mechanisms for monitoring and assessing updates to international accounting standards. They can collaborate with international organizations, professional accounting bodies, and relevant stakeholders to stay informed about the latest developments. Regular reviews of national regulatory frameworks can help identify areas where updates are required, ensuring that the adopted standards remain relevant and effective.
Conclusion: The adoption of international accounting standards has had a positive impact on financial reporting practices in the public sector in Greece and European countries. It has improved transparency, comparability, and reliability of financial information, benefiting stakeholders such as government agencies, investors, creditors, and citizens. While challenges exist, continuous improvement efforts are crucial to ensure the ongoing alignment with international accounting standards and to maximize the benefits of financial transparency and accountability in the public sector (Kim & Kim, 2017) .
5. Effects of International Accounting Standards on Public Management
5.1. Impact on Budgeting Process
The adoption of international accounting standards in the public sector has brought about significant changes in the budgeting process in Greece and European countries. These standards have introduced a performance-based approach to budgeting, emphasizing the achievement of outcomes and results rather than simply allocating funds based on historical spending patterns. This section explores the impact of international accounting standards on the budgeting process and highlights the benefits associated with this shift (Bouka & Kordosi, 2018) .
1) Performance-Based Budgeting: International accounting standards promote the adoption of performance-based budgeting practices in the public sector. Performance-based budgeting focuses on setting clear objectives, establishing performance indicators, and linking resource allocation to the achievement of desired outcomes. It encourages a more strategic and results-oriented approach to budgeting, enabling public sector entities to align their resources with their priorities and goals.
Under this approach, public sector entities are required to define measurable targets and outcomes for each program or activity. Budgets are then developed based on the estimated costs required to achieve these outcomes. This shift from input-based budgeting to outcome-based budgeting helps improve the effectiveness and efficiency of resource allocation by ensuring that funds are directed towards programs and activities that contribute to desired results.
2) Efficiency and Effectiveness: The adoption of international accounting standards in the budgeting process promotes efficiency and effectiveness in the allocation of public resources. By focusing on performance and outcomes, public sector entities can identify areas where resources can be allocated more effectively to achieve desired results. This enables them to prioritize programs and activities that have a higher impact and value for money.
Performance-based budgeting encourages a thorough review of existing programs and services to assess their effectiveness and efficiency. Public sector entities are encouraged to evaluate the outcomes achieved in relation to the resources expended. This evaluation process allows for the identification of underperforming programs or areas where resources could be reallocated to achieve better results (Bouka & Kordosi, 2018) .
3) Accountability and Transparency: The adoption of international accounting standards in the budgeting process enhances accountability and transparency in the public sector. By linking resource allocation to desired outcomes, public sector entities are required to justify their budget proposals based on the expected results. This promotes greater accountability for the use of public funds and ensures that resources are allocated based on clear objectives and performance indicators.
Performance-based budgeting also improves transparency by providing clear and measurable targets for each program or activity. It allows stakeholders, including citizens, policymakers, and oversight bodies, to assess the effectiveness of public spending and hold public sector entities accountable for the achievement of desired outcomes. This transparency helps build public trust and confidence in the budgeting process and fosters a greater understanding of how public funds are allocated and utilized (Bouka & Kordosi, 2018) .
4) Evaluation and Continuous Improvement: International accounting standards encourage public sector entities to establish monitoring and evaluation mechanisms to assess the effectiveness and efficiency of programs and activities. This evaluation process provides valuable feedback on the performance and outcomes achieved, allowing for continuous improvement in resource allocation decisions.
Through the adoption of performance-based budgeting, public sector entities can identify areas for improvement and make informed decisions on reallocating resources to achieve better results. The evaluation process helps identify successful strategies and best practices that can be replicated across programs or shared among public sector entities, leading to increased efficiency and effectiveness in the use of public funds.
In conclusion, the adoption of international accounting standards in the budgeting process has had a significant impact on the public sector in Greece and European countries. The shift towards performance-based budgeting promotes efficiency, effectiveness, accountability, and transparency in the allocation of public resources. It encourages a focus on outcomes and results, leading to improved resource allocation decisions and better value for money. The evaluation process facilitated by these standards enables continuous improvement and learning, ensuring that public sector entities strive for excellence in achieving desired outcomes (Bouka & Kordosi, 2018) .
5.2. Influence on Performance Measurement
The adoption of international accounting standards in the public sector has had a significant influence on performance measurement practices. By aligning with standardized accounting and reporting frameworks, public sector entities in Greece and European countries have improved their ability to track and measure performance against predetermined targets and benchmarks. This section explores the impact of international accounting standards on performance measurement and highlights the benefits associated with this alignment (Toudas, 2018) .
1) Standardized Performance Measurement: International accounting standards provide a standardized framework for measuring and reporting performance in the public sector. By adopting these standards, public sector entities are required to establish clear performance indicators, set targets, and monitor progress towards achieving desired outcomes. This standardized approach enhances comparability and consistency in performance measurement across different entities and jurisdictions.
Standardized performance measurement enables public sector entities to assess their efficiency and effectiveness in delivering public services and achieving desired outcomes. It provides a structured and objective basis for evaluating performance, enabling informed decision-making and resource allocation. This consistency in performance measurement also facilitates benchmarking and allows for the identification of best practices and areas for improvement (Toudas, 2018) .
2) Assessment of Efficiency and Effectiveness: The adoption of international accounting standards in performance measurement promotes the assessment of efficiency and effectiveness in the public sector. These standards require public sector entities to evaluate the inputs, outputs, and outcomes of their programs and activities. By measuring inputs (resources), outputs (deliverables), and outcomes (impact), entities can assess how effectively resources are utilized to produce desired results.
Performance measurement based on international accounting standards enables public sector entities to identify areas of inefficiency and take corrective actions. It helps in evaluating the cost-effectiveness of programs, determining whether the desired outcomes are achieved within the allocated resources. This assessment of efficiency and effectiveness supports informed decision-making and resource allocation, ensuring that public funds are utilized in the most efficient and impactful manner (Toudas, 2018) .
3) Benchmarking and Comparative Analysis: Adopting international accounting standards for performance measurement facilitates benchmarking and comparative analysis in the public sector. With standardized performance indicators and measurement frameworks, entities can compare their performance against industry standards, best practices, or similar entities within and across jurisdictions.
Benchmarking allows public sector entities to assess their performance relative to others, identify areas for improvement, and learn from successful practices. It enables entities to set realistic targets, identify performance gaps, and implement strategies to bridge those gaps. Comparative analysis also provides valuable insights into the effectiveness of policies and programs, helping policymakers make evidence-based decisions and allocate resources strategically (Toudas, 2018) .
4) Evidence-Based Decision Making: Performance measurement aligned with international accounting standards promotes evidence-based decision-making in the public sector. By collecting and analyzing reliable performance data, entities can generate insights that inform policy development, resource allocation, and program evaluation. Performance measurement enables entities to assess the effectiveness of existing policies and programs and make informed adjustments or reallocations as needed.
Evidence-based decision-making enhances the efficiency and effectiveness of public sector operations by ensuring that resources are allocated to programs and activities with a proven track record of achieving desired outcomes. It helps policymakers understand the impact of their decisions and make informed choices based on objective performance data. This leads to more targeted and efficient use of public resources and improved outcomes for citizens (Toudas, 2018) .
5.3. Impact on Decision-Making Processes
The adoption of international accounting standards has had a significant impact on decision-making processes in the public sector. These standards provide a standardized framework for financial information, enabling more informed and evidence-based decision-making. Decision-makers can rely on reliable and comparable financial data to assess the financial health, sustainability, and performance of public sector entities (Ballas et al., 2019) .
Moreover, international accounting standards promote transparency and accountability in decision-making. By requiring disclosure of financial information, including revenue, expenses, and assets, these standards provide decision-makers with a comprehensive view of the financial implications of their decisions. This promotes responsible decision-making, as decision-makers are aware of the financial consequences and risks associated with their choices (Ballas et al., 2019) .
5.4. Challenges and Opportunities in Implementing International Accounting Standards in Public Management
The implementation of international accounting standards in public management practices presents both challenges and opportunities. One of the main challenges is the need for capacity-building and training programs to ensure that public sector managers and staff have the necessary knowledge and skills to apply these standards effectively. The cultural and institutional context of each country may also pose challenges in terms of changing mindsets and organizational cultures (Toudas, 2018) . Additionally, the implementation of international accounting standards requires coordination among various government agencies, departments, and entities. It necessitates the establishment of effective governance structures, monitoring mechanisms, and enforcement procedures to ensure compliance and consistency in financial reporting and management practices.
Despite these challenges, the adoption of international accounting standards offers opportunities for improved public management. It enables better financial management, transparency, and accountability. It enhances the ability to evaluate the efficiency and effectiveness of public sector programs and services. It also promotes the integration of financial and non-financial information, allowing for a more holistic assessment of public sector performance and impact (Toudas, 2018) .
5.5. Continuous Improvement and Adaptation
Continuous improvement and adaptation are essential in realizing the full benefits of international accounting standards in public management. This involves ongoing training and professional development programs for public sector managers and staff to enhance their understanding and application of these standards. It also requires regular review and update of national regulatory frameworks to align with evolving international standards and best practices (Bouka & Kordosi, 2018) . Furthermore, collaboration and knowledge-sharing among countries and international organizations play a crucial role in facilitating the exchange of experiences, lessons learned, and innovative approaches in implementing international accounting standards in public management. This collaborative approach enables countries to learn from each other’s successes and challenges, fostering a culture of continuous improvement and adaptation.
The adoption of international accounting standards in the public sector has had significant effects on public management practices in Greece and European countries. It has influenced the budgeting process, performance measurement, and decision-making processes, promoting efficiency, effectiveness, and accountability. Despite challenges, continuous improvement efforts and collaboration are necessary to maximize the benefits of international accounting standards in public management and drive positive outcomes in the public sector (Bouka & Kordosi, 2018) .
6. Challenges and Future Directions
6.1. Challenges in Adopting and Implementing International Accounting Standards
The adoption and implementation of international accounting standards in the public sector present several challenges in Greece and European countries. These challenges can arise from various factors, including capacity building, cultural differences, and political influences (Barton & Karim, 2019) .
Capacity Building
One of the primary challenges is the need for capacity building among public sector accountants and professionals. The successful adoption and implementation of international accounting standards require individuals with the necessary knowledge, skills, and expertise to apply these standards effectively. However, there may be a lack of trained professionals in some countries, which can hinder the proper implementation of the standards.
Addressing this challenge requires investment in training programs, professional development initiatives, and knowledge-sharing platforms. Governments and relevant stakeholders should provide opportunities for public sector accountants to enhance their understanding and application of international accounting standards. Collaboration with professional accounting bodies and international organizations can also facilitate capacity building efforts (Barton & Karim, 2019) .
Cultural Differences
Cultural differences can pose challenges in the adoption and implementation of international accounting standards. Different countries have diverse cultural contexts, which may influence attitudes towards financial reporting, transparency, and accountability. Cultural factors, such as a preference for discretion or different perceptions of disclosure, can affect the successful alignment with international accounting standards.
Overcoming these challenges requires raising awareness and understanding of the benefits of transparent financial reporting and the importance of international accounting standards. Education and training programs should address cultural considerations and promote a culture of transparency and accountability in financial reporting practices (Barton & Karim, 2019) .
Political Factors
Political factors can also impact the adoption and implementation of international accounting standards in the public sector. Political will, commitment, and stability are crucial for the successful alignment with these standards. However, political priorities and changes in leadership can influence the level of support and resources allocated to the implementation process.
To mitigate these challenges, it is essential to establish robust governance structures that ensure continuity and consistency in the adoption and implementation of international accounting standards. These structures should involve multiple stakeholders, including government officials, policymakers, professional accounting bodies, and international organizations. Transparent and inclusive decision-making processes can help maintain momentum and commitment, regardless of political changes (Barton & Karim, 2019) .
6.2. Future Implications and Strategies
To address the challenges identified, several future directions and strategies can be pursued to facilitate the adoption and implementation of international accounting standards in the public sector (Adhikari & Agrawal, 2019) .
Strengthening Capacity Building Efforts
Continued investment in capacity building is crucial to ensure that public sector accountants and professionals have the necessary knowledge and skills to effectively apply international accounting standards. This includes providing comprehensive training programs, professional development opportunities, and certification schemes. Collaborations between governments, professional accounting bodies, and educational institutions can contribute to the development of a skilled workforce capable of implementing these standards.
Promoting International Collaboration and Knowledge Sharing
International collaboration and knowledge sharing play a significant role in overcoming challenges and sharing best practices. Countries should engage in regular exchanges, conferences, and workshops to learn from each other’s experiences and gain insights into successful implementation strategies. International organizations, such as the International Federation of Accountants (IFAC) and the International Public Sector Accounting Standards Board (IPSASB), can facilitate these collaborations and provide guidance and support to countries in adopting and implementing international accounting standards (Adhikari & Agrawal, 2019) .
Aligning National Regulatory Frameworks
To ensure effective adoption and implementation of international accounting standards, national regulatory frameworks need to be aligned with these standards. Governments should regularly review and update their regulations to reflect changes in international accounting standards. Collaboration between governments and standard-setting bodies can help address any gaps or inconsistencies in national regulations and ensure alignment with international best practices.
Engaging Stakeholders and Raising Awareness
Engaging stakeholders and raising awareness about the benefits of international accounting standards is essential for successful implementation. Governments should communicate the importance of transparent financial reporting, accountability, and the positive impact of international accounting standards on public sector management. This includes engaging with policymakers, public sector entities, professional accounting bodies, and the general public to foster understanding and support for the adoption and implementation process (Adhikari & Agrawal, 2019) .
The adoption and implementation of international accounting standards in the public sector in Greece and European countries face various challenges related to capacity building, cultural differences, and political factors. However, by strengthening capacity building efforts, promoting international collaboration, aligning national regulatory frameworks, and engaging stakeholders, these challenges can be overcome. With a strategic and collaborative approach, the successful adoption and implementation of international accounting standards can contribute to enhanced financial transparency, accountability, and public management practices (Adhikari & Agrawal, 2019) .
7. Conclusion
The adoption and implementation of international accounting standards in the public sector have had a significant impact on financial reporting, public management, and decision-making processes in Greece and European countries. Through this study, we have explored the importance, challenges, and future directions related to these standards, providing valuable insights for policymakers, regulators, and practitioners in the field. Several key findings have emerged regarding the impact of international accounting standards on the public sector in Greece and Europe. Firstly, the adoption of these standards has led to improved financial transparency, comparability, and reliability of financial information. It has facilitated the alignment of financial reporting practices with global best practices, enhancing the credibility of public sector financial statements.
Secondly, the adoption of international accounting standards has promoted accountability and informed decision-making in the public sector. By providing standardized frameworks for financial reporting, these standards have enabled stakeholders to evaluate the financial health, sustainability, and performance of public sector entities. Decision-makers can rely on reliable and comparable financial data to assess the financial consequences and risks associated with their choices.
Furthermore, the adoption of international accounting standards has influenced public management practices, particularly in the areas of budgeting, performance measurement, and decision-making. Performance-based budgeting has become more prevalent, focusing on achieving outcomes and results rather than relying on historical spending patterns. Performance measurement systems aligned with international accounting standards have facilitated the assessment of efficiency, effectiveness, and the achievement of desired outcomes. Moreover, the transparency and accountability promoted by these standards have influenced responsible decision-making in the public sector.
8. Benefits and Challenges
The adoption of international accounting standards in the public sector has brought several benefits. It has improved financial transparency, comparability, and reliability, which in turn enhances trust and confidence in public sector financial statements. The standardized frameworks have enabled more informed decision-making, leading to better resource allocation and improved performance outcomes. Additionally, the adoption of these standards has facilitated international comparability, allowing for benchmarking and the exchange of best practices among countries.
However, the adoption and implementation of international accounting standards in the public sector also pose challenges. Capacity building is crucial to ensure that public sector accountants and professionals have the necessary knowledge and skills to apply these standards effectively. Cultural differences can influence attitudes towards financial reporting and transparency, requiring awareness and education initiatives to foster a culture of accountability. Moreover, political factors such as changes in leadership and priorities can impact the level of support and resources allocated to the implementation process.
9. Recommendations for Further Improvement
To address the challenges identified and further improve the adoption and implementation of international accounting standards in the public sector, several recommendations can be made:
Firstly, continued investment in capacity building is necessary to enhance the knowledge and skills of public sector accountants and professionals. Training programs, professional development initiatives, and collaborations with accounting bodies can contribute to building a skilled workforce capable of effectively applying international accounting standards.
Secondly, promoting international collaboration and knowledge sharing is crucial. Regular exchanges, conferences, and workshops provide opportunities for countries to learn from each other’s experiences and gain insights into successful implementation strategies. Collaboration with international organizations can provide guidance and support in adopting and implementing international accounting standards.
Also, aligning national regulatory frameworks with international accounting standards is essential. Governments should regularly review and update their regulations to reflect changes in these standards. Collaboration with standard-setting bodies can help address any gaps or inconsistencies and ensure alignment with international best practices.
Last, engaging stakeholders and raising awareness is key to gaining support and fostering a culture of transparency and accountability. Governments should communicate the benefits of transparent financial reporting and the importance of international accounting standards to policymakers, public sector entities, and the general public.