Transition from cash based accounting to modified accrual accounting has imperatively been slow but a gradually evolving global movement across the nation which is being undertaken by majority state and local governments over past two decades. This migration from cash to modified accrual accounting was being called from increased demand for accountability and transparency in the public sector which only the use of cash accounting was not able to suffice. Therefore, the Public Service Committee [PSC] of International Federation of Accountants [IFAC] has been continually putting forward words of encouragement to adopt the International Public Sector Accounting Standards [IPSAS] to all developing nations. Fiji has made several attempts to achieve this on two previous occasions back in the years 1994 and 1998, however the project of migration was put aside on both occasions. Besides that, in the year 2005 a similar attempt was made, yet Fiji’s public service ended up adopting a different approach which was used in the previous unsuccessful attempts. Despite of many years of attempts, Fiji is still in the process of this migration. It was noted that overall unstable government and regular coups created hindrance in the progress of fast migration towards modified accrual accounting. Therefore, modified accrual accounting is yet to be effectively blended into the accounting systems of Fiji’s public service. IFAC has signified that there may have been certain “factors” that has influenced the migration of cash based accounting to modified accrual accounting and made it a slow progress. DISCUSSION POINT 1: From your viewpoint what could have been these factors that IFAC is placing emphasis on?

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Accrual accounting while arguably successfully implemented in developed economies is yet to be succe... View the full answer