THE BENEFITS AND CHALLENGES OF ADOPTING THE INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS IN FOREIGN CHARTIES IN ETHIOPIA

This study examined the benefits and challenges of adopting the International Public Sector
Accounting Standards (IPSAS) in the foreign charity organizations working in Ethiopia. The
objectives of the study was to provide an insight on the contribution of adopting IPSAS in
enhancing the level of accountability, transparency, strengthening the stakeholders perception
of the standards and taking educational and professional responsibilities. The population of
study was 353 foreign charity organizations and 2 government offices (CHSA and AABE). Using
purposive sampling,35 foreign charities organizations and 2 government offices were selected
for this study. 75 sample respondents, who were understanding IPSAS's objectives and were
responsible for the adoption process, were taken from the above institutions to fill the
questionnaire. Before processing the responses, the completed questionnaires were edited for
completeness and consistency. The data was then coded to enable the responses to be grouped
into various categories. Data were analyzed using descriptive statistics, correlations, and multiple
linear regression analysis The main results evidenced that the adoption of IPSAS enhances level
of accountability through asset management and transparency in information provided in the
financial reports. It was also found that IPSAS adoption is feasible target and clearer
understanding of the standard leads to effective implementation