Harmonising European Public Sector Accounting Standards (EPSAS): Issues and Perspectives

Abstract

Abstract An important reform project is ongoing concerning harmonising Europe’s public sector accounting standards (EPSAS). The European Commission appears willing to mimic and take the international private sector accounting as frame of reference, following the same pattern of implementation for international public sector accounting standards (IPSAS) that was enacted for the IAS-IFRS. But the Member States did react in a different way, this time, showing alert, raising questions, and providing resistance in some cases. Public sector accounting shall be considered in the specific context provided by public finances in general, and by a monetary union in particular. This paper takes perspective on these specificities while raising issues (i) on the EPSAS-making governance; (ii) relationship between cash-basis and accrual-basis of accounting; (iii) accounting for governmental liabilities by Member States; and (iv) evidence of net assets under accruals-basis.