Accounting impact by the application of IPSAS 17 in the National Councils of Rural Parish Governments of Ecuador: Case CONAGOPARE Loja

Abstract

In the last decade, several Latin American countries have introduced reforms to improve the administration of public finances, mainly in budget management and fiscal policy.  Consequently, the International Public Sector Accounting Standards (IPSAS) have been set up in good practice standards on accounting and financial information of public entities at the global level.

In this sense, in accordance with the strategy of the National Government of Ecuador to manage public finances on a sustainable, responsible and transparent manner,  it established for the fiscal year 2019 the implementation of IPSAS, thus achieving significant progress in alignment with international standards and strengthening the implementation of best practices and knowledge transfer.

After a brief analysis of the IASB role  in the international accounting harmonization process, this article presents a methodological procedure for recognition, measurement and  property register, plant and equipment, under the IPSAS 17, on that basis, presents the models of accounting record for the acquisition and revaluation by the increase or decrease in the value of the goods. Finally, the article presents a series of reflections about the practical difficulties the CONAGOPARE Loja shows in this kind of account processing, and possible solutions, which, in the opinion of the author, could be considered by the respective authorities.