Gap Analysis: Significant Differences Between IPSAS and Cambodian Government Financial Report Presentation and Accounting for Financial Performance
| dc.contributor.author | Casey Barnett | |
| dc.date.accessioned | 2026-06-08T06:34:40Z | |
| dc.date.issued | 2023-02-06 | |
| dc.description | The Cambodian Ministry of Economy and Finance (MEF) has formally and publicly committed to implementation of International Public Sector Accounting Standards (IPSAS), most recently in the MEF Strategy on the Implementation of Accrual Basis Public Sector Accounting Standards in Cambodia 2021 - 2031. Implementation will be carried out primarily by the General Department of the National Treasury which has the role of public accountant, supported by the national accounting standard setter and regulator, the Accounting and Auditing Regulator (ACAR). To support planning for the implementation of IPSAS, this report identifies significant differences between current Cambodian government financial report presentation and accounting for financial performance (income and expense) and the requirements of accrual IPSAS. Recommendations to achieve compliance with IPSAS are provided. There are three significant recurring and pervasive issues. First, the MEF must decide how IPSAS compliant financial reporting will fit into a framework of public general purpose financial reporting. The MEF is encouraged to align with the international practice of submitting audited general purpose financial reports to the National Assembly. This may be done by incorporating the financial report into the existing budget settlement law or by revising the budget settlement law financial reports to conform to IPSAS requirements. Another approach is to establish aprocess of reporting that is parallel to but separate from the budget settlement law process. Second, government financial reporting must identify and consolidate all government controlled entities. There are significant and growing government income, expense and liabilities that are not consolidated or reported in GDNT accounts. Non-consolidated entities include state owned enterprises,the National Bank of Cambodia, liabilities of the National Social Security Fund, and liabilities of the government employee pension, and public autonomous establishments such as national universities and hospitals. Third, there is inconsistent and incomplete aggregation and classification of expenditure, especially expenditure that does not pass through the GDNT. In the budget settlement law, there is asignificant (e.g. over 5 trillion Cambodian Riel, $1.3 billion United States dollars in 2021) category of expenditure referred to as “foreign financed capital expenditure” that does not pass through the GDNT and is not classified in accordance with the government chart of accounts. Also, there isincomplete aggregation of expenditure by nature of expense or function. Finally, there is inconsistent classification of expenditure, such as significant amounts of capital expenditure being presented as current expenditure and vice versa. | |
| dc.identifier.uri | https://cam-ed-oar.com/handle/cam-ed-oar/627 | |
| dc.publisher | CamEd Business School | |
| dc.title | Gap Analysis: Significant Differences Between IPSAS and Cambodian Government Financial Report Presentation and Accounting for Financial Performance | |
| dc.type | Technical Report |