The Implementation of International Public Sector Accounting Standards (IPSAS) in the Greek Public Sector: Evaluation, Benefits, and Challenges

Abstract

This study investigates the adoption of International Public Sector Accounting Standards
(IPSAS) within the Greek public health sector, with particular emphasis on the reforms
introduced through Presidential Decree 54/2018 and Law 4270/2014. These legislative
initiatives establish a unified accounting framework designed to enhance transparency,
comparability, and the reliability of financial reporting across public entities, while
replacing outdated sectoral accounting practices. The reform agenda, scheduled for full
implementation by January 2025, addresses structural weaknesses such as incomplete
asset representation, inconsistent accounting treatment of transactions, and deficiencies
in budgetary control.
The research employs a combined methodological approach, drawing on an extensive
literature review, digital resources, and empirical analysis. A case study of the General
Hospital of Thessaloniki “Georgios Papanikolaou” is used to illustrate the practical
application of selected IPSAS provisions and to evaluate their impact on financial
statements and operational management. Findings suggest that while IPSAS adoption
offers significant benefits in terms of standardization, accountability, and improved
decision-making, successful implementation requires a broader cultural and
organizational shift. This includes targeted training for public sector personnel, the
modernization of internal control systems, and sustained political and administrative
commitment.

JEL Classifications: H830
Keywords: IPSAS, accrual basis, financial reporting, implementation challenges, public
administration