The WOG (Whole of Government) financial statements comprise the consolidated accounts of the central government and 

its ministries and departments. Fiji moved from the modified accrual basis of accounting to the Cash Basis International Public Sector Accounting Standards (IPSAS) in fiscal year 2016. This change was one of the many reforms recommended by the Pacific Financial Technical Assistance Centre (PFTAC) Mission in March 2015 to improve public financial management in the country. The adoption of the Cash Basis IPSAS framework is a stepping-stone toward the adoption of Accrual Basis IPSAS. This change entailed a review of the FMA, which was completed in February 2017. Another initiative, which is part of the first phase of transitional issues approved by the minister of economy, involves strengthening the analysis of reconciliations submitted by ministries and departments to ensure that errors and unsubstantiated figures in the general ledger are identified and properly corrected. The aim is to address the lack of reconciliation that has featured prominently in reports of the auditor general. 

 

Required:

 

Critically review the rationale for the adoption of Cash Basis IPSAS.

Answer rating: 100% (QA)

The rationale for Fijis adoption of Cash Basis IPSAS lies in add... View the full answer