WHY PUBLIC SECTOR ACCOUNTING REFORMS CONSISTENTLY FAIL TO DELIVER REAL TRANSPARENCY AND ACCOUNTABILITY

Over the past decades, governments worldwide have promoted accrual-based accounting reforms inspired by the New Public Financial Management (NPFM) agenda, seeking to strengthen fiscal transparency and managerial accountability. Yet, in many jurisdictions, particularly in developing countries and late adopters, the promised outcomes have remained largely unfulfilled. This study raises a key question: why do public sector accounting reforms consistently fail to deliver genuine improvements in transparency and accountability, despite formal convergence with International Public Sector Accounting Standards (IPSAS)? Using a qualitative, multi-method design, the paper explores the institutional and operational dynamics shaping the outcomes of these reforms. Comparative case studies from Australia, New Zealand, Brazil, Greece, Spain, Portugal, and Italy reveal that legal adoption of accrual standards often conceals symbolic compliance and persistent fiscal manipulation. Three main insights emerge: (i) legal alignment with IPSAS is necessary but insufficient to enhance fiscal governance; (ii) enforcement institutions and real-time reconciliation mechanisms are decisive in mediating reform results; and (iii) despite abundant accrual data, its integration into decision-making remains limited by institutional inertia and reporting complexity. The study concludes that meaningful reform requires not only technical adoption, but also embedding accrual information into managerial routines, developing user-centered dissemination strategies, and fostering a robust ecosystem of accountability. These findings contribute to public financial management literature by providing a governance-centered explanation for the persistent gap between accounting sophistication and practical accountability.