There has been steady, gradual progress in governments globally moving from cash to accrual-based financial reporting, according to a new report from the International Federation of Accountants and the Chartered Institute of Public Finance and Accountancy.
Fifty-six percent of jurisdictions are projected to report on an accrual basis by 2030, the report, International Public Sector Financial Accountability Index 2025 Status Report, states.
“As reported in the 2021 status report, there is continuing global shift from cash to accrual underway across all regions of the world. However, this shift has become more gradual since the 2021 report, apparently as a result of the significant increase in financial and operational pressures on governments caused by the pandemic,” the IFAC and the CIPFA said.
Accrual accounting provides governments with a clearer picture of their finances by recording the substance of transactions as they occur, rather than when cash transfers occur. This transparency helps inform decision-making and improves the ability to hold governments to account for their decisions, the two organizations noted.
“Strengthening public financial management through accrual reporting is fundamental to addressing today’s fiscal challenges and building sustainable futures,” CIPFA CEO Owen Mapley said in a statement. “It is encouraging to see the shift from cash to accrual has continued despite the impact of the pandemic.”
The 2025 report also found that high-income jurisdictions made up the majority of accrual adopters (57%), but by 2030, the landscape will shift. Sixty percent of jurisdictions using accrual are projected to come from middle- and low-income economies.
The report also says that by 2030, 81% of accrual-reporting jurisdictions are expected to be applying International Public Sector Accounting Standards either directly, with modifications, or as the foundation for national standards.
“Accrual based reporting is essential for public sector transparency and accountability,” IFAC CEO Lee White said. “It is also the foundation for the use of global IPSAS standards. Our members fulfil a vital role in advising and supporting governments in their journey with the use of accrual accounting and global standards delivering clear accountability.”
Ian Carruthers, chair of the International Public Sector Accounting Standards Board, added, “The increasing usage and influence of the IPSAS standards underlines the importance of the shift in IPSASB’s new five-year strategy toward maintenance of the standards suite, in particular through the recent establishment of the IPSASB Application Group.”
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Martin mukuka October 1 2025 at 1:56 pm
In Zambia our roadmap to accrual IPSAS adoption and implementation is 2026/2027 beginning with local government establishments in 2026 and Central Government in 2027. The previous targets were deferred and we hope this current roadmap materializes.