Abstract:

Purpose: The detailed relationships between globalization and accounting reform, and especially the introduction and adaptation of international standards, including IFRS and IPSAS in the public sector are considered in the paper. The basic objective is to learn not just how globalization influences the direction of reform, but also to investigate the institutional, political and cultural conditions that affect the success and failure of these reforms in different national contexts. Findings The discussion shows that globalisation has had a lot to do with the push towards the standardisation of accounting practices. However, the effects of these international reforms in the state sector are imbalanced and strongly controversial. Although the use of IFRS has become common, its implementation has frequently conflicted with those of the priorities of the public sector because of the difference in the objectives and functions. IPSAS is a more appropriate substitute, but it is obstructed by institutional frailty, political timidity, and complicated technical demands. Besides, no strong empirical research has been conducted to assess practical impacts of these reforms to governance, accountability and financial transparency. The review also adds that there is the need to change accounting practices in order to address current challenges in the world like digital innovation and sustainability. Practical Implications An approach towards reform needs to be nationally specific as opposed to indiscriminately applying international standards. The policymakers should invest in institutional capacity, stakeholder participation, and research following the footprints of the actual world changes on reforms. Secondly, researchers and standard developers should be willing to develop accounting models that are not very rigid so as to embrace global standards, and at the same time consider the local demands. Originality/Value This paper is a critical and integrative literature review on globalization and its reforms on the public sector accounting. It helps reveal theoretical and practical gaps in existing research and policy strategies, in particular in transferring global standards into various institutional conditions. The usefulness of the study resides in the fact that it suggests a more flexible, evidence-based reform agenda of the future that is responsive to the realities of the public governance in a globalized world.