Topic for Research Proposal

MY TOPIC
“Challenges and Prospects Implementation of International
Public Sector Accounting Standard (IPSAS) in Non-Profit
organization (NGO) in Ethiopia”

Prepared by: - Ketema Asfaw #ID: - PGE/57077/14

December, 2021
 CHAPTER ONE
1. INTRODUCTION

1.1 BACKGROUND OF THE SUDY

The last few decades have shown that many courtiers have engaged in reform and modernization
of the government accounting system. Development in the financial information system is the
main inclined of these reforms (Christiaens et al., 2015). The basic idea of these reforms tally
with the concept of New Public Management (Becker et al., 2014). NPM is managerial thought,
based on ideology to bring private practice into the public sector (Hood, 1991). Public sector
reforms widespread around the world under the ideology of New Public Management (NPM), an
international organization such as World Bank, UNDO and IMF are the main promoters for the
dissemination of these reforms especially in developing countries (Hood, 1991)
The performance reporting and financial reporting system of NGOs is getting high attention from
time to time due to the rapid increase in the influence of NGOs and their reliance on third party
funding. There is due concern and interest into how they measure and manage performance.
They prepare reports of different types and styles depending on the audience for that
information. Further, financial reporting differs not only according to the potential users or
audience for that information, but often lacks homogeneity within a particular country, due to
lack of regulation (CFG, 2012).
Financial reporting is also inconsistent between countries due to lack of international financial
reporting standards for NGOs. The CFG Symposium (2012) identified a need for a “shared
understanding, commonly known terms or agreement” for NPOs’ financial reporting so that
donors, beneficiaries and global networks can use this information appropriately. For example,
concern about money laundering and financing of terrorism has recently been focused on
criminals’ and financiers’ ability to establish and utilize NPOs to clean and move money around
the world (CFG, 2012).
1.1.1