Harmonisation of International Accounting Standards as a Driver of Public Finance Transparency in the Digital Era

Abstract

Background: The digitalisation of public administration is a pivotal factor in achieving fiscal openness. The harmonisation of reporting through International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS) is essential for unifying financial data, ensuring international comparability, and strengthening public trust in governmental financial management.

Objective: This study investigates the causal relationship between the adoption levels of international financial reporting standards and the resulting degree of fiscal transparency within government operations in the context of digital transformation.

Methodology: The research employed a systematic, analytical, and factor-based methodological approach. The analysis utilised secondary statistical data sourced from the World Bank, IMF, OECD, IFAC, and the European Commission to establish cross-country comparisons and quantitative outcomes.

Results: Findings indicate that countries with high digital maturity exhibit significantly higher average fiscal transparency (0.82) compared to those with low digitalisation (0.52). Furthermore, public integrity—measured by the Corruption Perception Index—averaged 71 in digitally mature nations compared to a global average of 55. Integrating international standards with digital platforms was found to reduce administrative reporting costs by 20–25% and audit duration by 30%, demonstrating enhanced budgetary control efficiency.

Unique Contribution: This research provides empirical confirmation of the synergy between IFRS/IPSAS and digital monitoring tools. It offers a data-driven policy mandate for improving financial transparency, control effectiveness, and management quality across all levels of government.

Conclusion: The integration of IFRS/IPSAS with digital public financial management platforms is directly associated with substantial increases in fiscal transparency and administrative integrity, leading to measurable improvements in efficiency and budget control.

Key Recommendation: Future research should focus on developing a specific implementation roadmap and evaluation framework for integrating IPSAS/IFRS into emerging digital governance architectures to quantify long-term economic impacts.