The Opportunities and Challenges of Adopting International Public Sector Accounting Standards in Charity Organization in Ethiopia

Abstract

The purpose of this study is to opportunity and challenge of adopting IPSAS in charity organization in Ethiopia. The study used 310 active and operational identified populations from charity organization, samples are taken and it adds two regulatory offices which is Accounting and Auditing Board of Ethiopia (AABE) and The Agency for Civil Society Organization (ACSO). The population of study 310 active and operational charity organization and 2 government offices were selected for this study. 31 of the population were taken from the charity organization And 2 from government organization. So, the total sample was 33. Judgment sampling was done. A close ended questionnaire based on likert scale was used to collect data. Data was analyzed by use of tabulating, specifically, frequencies count and validity test and regression and correlation analysis were generated using SPSS version 20. The study result concluded that the financial report is presenting by the use of IPSAS it is enhancing transparency and accountability of the public as same time the donors. However there was a challenge to get a qualified accountant, there was high cost to implement IPSAS in charity organization in Ethiopia and there was a lack of readiness of government departments like ACSO and AABE. It was recommended recruiting and train qualified staff, strengthens of the stander setters and regulatory bodies and need to support the local charity organization by decision makers.