Transitioning from cash accounting to accrual accounting in the public sector: global progress, advantages, challenges and prospects until 2030

Abstract

The reform of transitioning from cash-basis accounting to accrual-basis accounting in the public sector is taking place globally to enhance transparency, accountability and the efficiency of public financial management. This research uses data from the IPSF 2025 index by IFAC, CIPFA, IPSASB, along with sources from the IMF, OECD, World Bank and academic studies to analyze the progress of accrual accounting adoption worldwide, its benefits, challenges and prospects until 2030. The article also analyzes the case of Vietnam as an example of the roadmap for adopting IPSAS and public sector accounting reform in a developing country. The research contributes to providing a comprehensive overview of the current status and outlook for the adoption of accrual accounting in the public sector, while also suggesting policy implications to promote sustainable public sector accounting reform in various countries.