By Richard Johnstone in Rome | 11 November 2014
A global expert on International Public Sector Accounting Standards has urged Germany to do more to drive forward moves towards accrual accounting in Europe.
Speaking to Public Finance International, Thomas Müller-Marqués Berger, EY’s global leader for international public sector accounting and a member of the IPSAS Board, said that France and the UK were among countries in Europe that had helped drive forward the standards. They had also been key to the development of European standards, called EPSAS, which are intended to harmonise accounting standards in the European Union.
However, with a target date for the development of EPSAS looming, Müller-Marqués Berger said that Germany, the continent’s economic powerhouse, could also assist in the development.
The country, which mainly accounts on a cash basis, was ‘very strong and very powerful and therefore it is their observation that there is no change needed’.
He added: ‘But I would say that we need these strong countries as a front-runner and a role model for other countries in the Europe Union, but also globally, using these standards and going ahead in providing transparency.’
Implementation of EPSAS is still not underway due to the ongoing political debate about the cost and the benefits of harmonised accounting standards, he added.
‘We are waiting for a commission communication of the European Commission at that point in time and afterwards the next really important step is to publish and issue the framework regulation, which is planned for the end of 2015. So that’s certainly the most important step from a legal perspective, because that builds the legal fundament for the standard setting in Europe.’
This deadline could be met with buy-in from the new commission, he told PF International, but it was currently unclear the position of the new commission on EPSAS.
‘If we see the commission communication by the end of this year, then I would be optimistic that one year would be sufficient to work on the framework regulations and to issue it and get it improved by the European Parliament.’
This is where Germany could help push the plans forward, he added.
‘I do see the challenges for a huge country like Germany, with its fragmented federal system.
‘A lot has happened already on the basis of local government and also some of the states already changed and converted to accrual accounting and they are very interested in IPSAS and EPSAS developments, but unfortunately the federal level so far hasn’t made any steps towards this direction. They are considering it, certainly waiting for the developments around EPSAS, but they could do more.’
Watch PF International's interview with Thomas Müller-Marqués Berger here.
