Differential reporting for small governments: a Brazilian perspective on IPSAS

This study explores the glocalization of International Public Sector Accounting Standards (IPSAS) to address the unique challenges small local governments face in Brazil. The global standards, while providing a framework for harmonization, often require adaptations to meet diverse local conditions effectively. Through a comprehensive survey involving over 2,000 local government accountants and interviews with professionals analyzing the standards in Brazil, the research investigates the factors influencing IPSAS implementation. Key findings suggest that localized, differentiated reporting could be a practical strategy to maintain global harmonization while addressing local nuances, underscoring the necessity of adapting these global standards to local contexts to address unique local challenges without compromising global accounting principles. The study highlights the potential revival of the IPSAS Lite project, emphasizing the need for standards that balance global principles with local applicability. The outcomes are significant, showing that while IPSAS offers a uniform framework, its success in local settings depends on regulatory bodies' willingness to adapt and implement these standards in ways that reflect local financial and operational realities. This adaptation is crucial for sustaining local relevancy while achieving global harmonization, particularly in environments with varying resource availabilities and infrastructural supports. This research contributes to the broader discourse on public sector accounting and ongoing discussions on differentiated reporting and potential simplifications beneficial for smaller entities, highlighting the critical role of tailored approaches in the broader adoption of IPSAS.