International public sector accounting standards and the Palestinian perspective

The state's accounting system is a tool used by the state through its various units to achieve its strategic goals, enhance service levels, and present financial data regarding the state's fiscal situation in a clear and transparent manner. To improve this system, the International Federation of Accountants has sought to create a unified global framework for public sector accounting by adopting the International Public Sector Accounting Standards (IPSAS). One of the main objectives of these standards is to shift the basis of accounting from the cash basis to the accrual basis. The transition from cash-based accounting to accrual-based accounting has several significant effects: it improves the quality of financial reports, ensures transparency and accountability, allows for better performance evaluation, facilitates integration with the international community, and strengthens the role of oversight bodies in auditing and supervision. The primary goal of this research is to assess the current situation in the Palestinian public sector and its ability to implement international accounting standards. To achieve this, a systematic literature review was conducted on the implementation of IPSAS, public sector accounting reforms, and relevant case studies. This review aims to provide a theoretical framework, identify best practices, and evaluate the potential benefits and challenges of adopting IPSAS in Palestine. Additionally, the research questions were answered in order to draw meaningful conclusions. The findings of the reviewed studies indicate that the International Public Sector Accounting Standards are indeed applicable in Palestine. However, there are several challenges to implementing these standards within the Palestinian government and municipalities, including legal, technical, and educational barriers. Political instability, reduced donor support, and ongoing economic tensions with Israel further complicate the implementation process. Overcoming these obstacles is possible through targeted measures, including training, legal reforms, and strong support from top management. These steps are critical to ensure the successful implementation of IPSAS in Palestine. Keywords: International public sector accounting standard, IPSAS, Government accounting system, Palestinian public sector, Accrual basis.