The main objective of the study is to identify the impact of implementing the International Public Sector Accounting Standard (IPSAS 1) “Presentation of Financial Statements” on the reporting quality of large and medium-sized Palestinian municipalities. Reporting quality is represented by the characteristics of understandability, relevance, reliability, and comparability. The study also estimated whether this relationship is moderated by municipality size. The study includes 83 large and medium-sized municipalities representing more than half of the total number of the Palestinian municipalities. These municipalities are classified as A and B municipalities by the Municipal Development and Lending Fund for performance indicators of 2019, and the Ministry of Local Government (MoLG). Two checklists are used. The first is employed to measure the compliance of the Palestinian municipalities with IPSA 1 requirements; it was developed based on the checklist issued by Deloitte and the study objectives. The second checklist is used to measure the qualitative characteristics of the financial reports issued by municipalities. Correlation and regression analysis are used to test the impact of independent variables on the dependent variables.

The results show that there is a significant impact of municipalities compliance with the requirements of IPSAS 1 on the qualitative characteristics of understandability, reliability, and comparability. However, no impact is observed on the relevance of the reporting quality. Consequently, the study recommends obliging all Palestinian municipalities to adopt IPSAS 1, and ensure that municipalities to the standard requirements.  

Keywords: IPSAS1, Palestinian Municipalities, understandability, reliability, comparability, relevance of the reporting quality

Title

مجلة جامعة النجاح للعلوم الانسانية

Publisher

جامعة النجاح الوطنية

Publisher Country

Palestine

Indexing

Scopus

Impact Factor

None

Publication Type

Online only

Volume

39

Year

2025

Pages

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