Standard IPSAS and IFRS: A Narrative Review and Comparative Study of Their Implications for the Modernization of Moroccan Public Finances

Abstract

Under the aegis of the new public management, a major revision of public financial management has started in Morocco, demonstrated by the acceptance of international accounting standards for the public sector (IPSAS). This article aims to explain this decision by making a comparative study between IPSAS and the IFRS standards from which they are derived. Based on a study of the theoretical and empirical literature, whether of Moroccan or international origin, the analysis highlights three main lessons. First of all, IPSAS is not an independent standard, but a modified version of IFRS that takes into account the specificities of the public sector: it keeps the technical principles (accrual accounting, priority of the economic substance, full financial statements) while distancing itself from products without direct compensation, budget information and goods that do not produce cash. Second, the crucial gap is one of teleology: IFRS promotes investment decision-making while IPSAS aims to provide transparent reporting to citizens. Finally, the Moroccan situation highlights the complementary aspect of this dual framework: the adoption of IFRS by companies and the harmonization of state accounting with IPSAS, supported by the 2011 Constitution and the organic law on the finance law, both aim to establish a common process of transparency, strengthening and possibly authentication of public accounts.