The Impact of Accrual Basis Application in Accordance with International Public Sector Accounting Standards (IPSAS) on the Preparation and Implementation of the Federal Public Budget

This research focuses on examining the impact of adopting the accrual basis according to the International Public Sector Accounting Standards (IPSAS) on the preparation and implementation of the federal budget. The study highlights how the adoption of the accrual basis, in line with IPSAS standards, enhances the accuracy and objectivity of financial data used in federal budget preparation, which serves as a vital tool for assessing financial performance and promoting accountability. The research relies on a review of relevant literature and current practices in this area, aiming to illustrate the effect of the relationship between adopting the accrual basis as per IPSAS and the processes of federal budget preparation and implementation in the Republic of Iraq. To achieve its objective, the study employs a descriptive analytical method and includes a survey questionnaire based on a five-point Likert scale, designed to align with the characteristics of the study population. The target population for this survey consists of professionals employed at the Federal Board of Supreme Audit in Iraq, totaling 204 individuals. A set of statistical methods, including mean, standard deviation, Pearson's correlation coefficient, and multiple regression, was applied to the collected data to analyze the relationship between the study variables. The study found that using the cash basis in public sector financial accounting can lead to inaccuracies in representing revenues and expenditures, which contradicts IPSAS standards. Furthermore, Iraq’s current governmental accounting system suffers from a lack of compliance with international standards, leading to incomplete recognition of assets and liabilities. The study recommends transitioning to the accrual basis in public sector financial accounting to produce more accurate and comprehensive financial reports and to comply with international standards. It also emphasizes the need to update the accounting system to align with IPSAS, focusing on accurate asset and liability recognition to facilitate optimal use of public resources.