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Adoption of International Public Sector Accounting Standard
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The current accounting system of the government is not complete as it is limited to include all assets and liabilities and hence weak internal control, difficult to manage resources and generate comprehensive and consistent information. Due to this governments at different level increasingly show their interest to improve government budgeting, accounting and financial reporting. In line with this, the paper examined the current accounting practice and adoption of International Public Sector Accounting Standard in Federal government accounting system of Ethiopia. Problems in relation to the practice of the government accounting were identified, comparison of the national accounting standard and International Public Sector Accounting Standard were made and then the paper draw important conclusions. This paper is helpful for those professional who are participating in reform of public financial management especially in the areas of accounting and reporting and anyone interested in the area.
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