Developments in Public Sector Accounting Practices: The Ghanaian Experience

Abstract

Purpose – This chapter examines developments in public sector accounting practices using evidence from a developing country (Ghana), and explores the motivations for such developments from post-independence to date. This stems from the limited research in public sector accounting particularly on developing countries despite the rich empirical context that they provide for the global research community.

Design/methodology/approach – Advocating for institutional theory, data was gathered from multiple sources including interviews, discussions and documents to achieve the above objectives.

Findings – Evidence gathered shows gradual shift from cash accounting to accrual accounting practices (modified), including computerization of the entire public sector accounting and reporting processes. Indeed, the World Bank and IMF sponsored reform (PUFMARP) instigated many of the major developments in the public sector accounting practices, including the adoption of accrual accounting and deployment of integrated financial management information system.

Research limitations/implications – Findings on developments during the post-colonial period were only based on the analysis of few documentary sources.

Originality/value – The study contributes to the limited studies in public sector accounting from developing countries and Africa in particular. It also extends the application of institutional theory in public sector accounting research.

Implications – Findings inform practitioners and policy-makers on the context-specific factors worth considering in the adoption of public sector accounting practices.

Citation

Nana Yaw Simpson, S. (2012), "Developments in Public Sector Accounting Practices: The Ghanaian Experience", Tauringana, V. and Mangena, M. (Ed.) Accounting in Africa (Research in Accounting in Emerging Economies, Vol. 12 Part A), Emerald Group Publishing Limited, Leeds, pp. 209-226. https://doi.org/10.1108/S1479-3563(2012)000012A013