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The chapter discusses the recent multifaceted developments in public sector financial management and in particular the contribution of the permanent study group (PSG) XII in the debate regarding the reforms and the innovations occurring at all governmental levels and different public sector organizations. Guiding the reader through the journey of the PSG, the chapter outlines the key challenges that future studies dealing with public sector financial management will be called to envisage. In parallel, it focuses on the harmonization of governmental accounting systems towards IPSAS or EPSAS and national accounts in Europe by shedding light on the existing situation and the imminent trends.

A cosa serve l’integrated reporting? Come è composto? Quali conseguenze derivano dalla sua adozione? Cosa si intende per valore aziendale? Chi sono oggi i soggetti interessati a conoscere tale valore? Quali sono le forme di disclosure idonee a rappresentarlo? Le nuove forme di disclosure rappresentano pienamente la relazione azienda-ambiente? Nella ricerca delle risposte a queste domande, il volume guida il lettore attraverso un percorso evolutivo nella comunicazione economi-co-finanziaria e non-finanziaria e all’esplorazione dell’integrated reporting.. L’integrated reporting trae origine e ragione d’essere nell’integrated thinking ed intende comunicare alle diverse categorie di stakeholder in maniera sintetica e integrata i processi attraverso cui l’azienda crea valore nel tempo, rinnovando quei “capitali” impiegati nei propri processi produttivi. Il volume è arricchito da un’analisi puntuale di casi nazionali ed internazionali di redazione del nuovo report, offrendo spunti critici di riflessione sul tema dell’informativa integrata.

Fair value measures in financial reporting have been at the centre of the debate in the last years and many scholars consider this kind of evaluation the more relevant and useful. The paper discuss if these conditions recur also in those countries, like Italy, wherein lenders are the major source of financing and hence are the ???primary users??? of financial reporting. Specifically, we argue that fair valuation ??? while potentially useful in countries that boast advanced capital markets with diffused equity ownership ??? is not as useful, and even potentially misleading, in these countries. The discussion about fair valuation grounds on a literature review on the prediction of default, bankruptcy, credit-rating, and the pricing of credit. In this literature the informational inputs used for predictions and pricing of such events largely ignore fair values, whether measured as exit values or otherwise. Basically, the idea that fair values are suitable for all countries and entities, regardless of differences in ownership structure and modes of financing, may need to be re-examined. Possibly, enhanced disclosures of fair values are more likely to satisfy the criterion of decision usefulness in those countries where lenders are the main source of financing.

This book focuses on the accounting change processes that drive integrated reporting in the public sector. The Integrated Report is a tool that allows public sector entities to quantify and convey those aspects of their organization, strategy, governance and performance that lead to the creation of public value over time. To be successfully introduced, integrated reporting must follow a specific path of accounting change. The context in which public sector entities operate, and the unique relationship between the public sector and the environment, redefine the accounting process of change to deliver an integrated report. The authors provide a fresh look at integrated reporting on the basis of the accounting change processes that drive it, helping academics and practitioners to gain a deeper understanding of the challenges and benefits in terms of public value creation.

The role of auditors in Italian Local Governments (ILGs) is extremely broad and it requires a high level of experience. This research aims to investigate the quality of audit reports: to this end, through the analysis of the financial reporting of a sample of ILGs, we investigate the quality of auditing in relation to the quality of financial results reported.

The accounting systems of all levels of government in Europe have undergone substantial changes during the last 20 years, which have not always been communicated outside country boundaries in a timely manner. This book addresses that shortcoming. With contributions by 25 leading researchers, it discusses in detail the governmental accounting status quo in 14 European countries. The book presents in a concise, thorough and comprehensive way the public sector accounting, budgeting and auditing systems at all levels of government, followed by a comparative analysis of the governmental accounting systems discussed. It also sheds light on the challenges that are likely to be faced by European countries as they move towards adopting the European Public Sector Accounting Standards (EPSAS), and offers a valuable reference resource for academics, researchers, students, auditors, public administrators and policy makers.

Le aziende pubbliche sono protagoniste, ormai da oltre un decennio, di un profondo processo di cambiamento e di innovazione, volto a recuperare il complesso e composto equilibrio aziendale. Occorre dunque, nell'ottica economico-aziendale, individuare quali più progrediti strumenti possano favorire il controllo costante e tempestivo del suddetto equilibrio, in modo da prevenire o, se occorre, fronteggiare l'insorgere di stati di crisi. Partendo da queste riflessioni, il presente lavoro esamina le caratteristiche della crisi nelle aziende pubbliche, le possibili origini delle medesime e gli strumenti che possono contribuire al loro fronteggiamento. In particolare, fa riferimento alla realtà degli enti locali, relativamente ai quali presenta anche un possibile modello di balanced scorecard, impiegabile quale strumento per prevedere e controllare i diversi aspetti critici della gestione di tali enti

Participatory budgeting (PB) is a relatively novel approach to the allocation of funds which allows ordinary citizens to become directly involved in how local government money is spent. This study identifies and examines the features and drivers of PB that incentivize citizen participation and the co-production of public services. Our analysis takes a fresh approach by setting PB initiatives in an innovative frame combining a paradigm of ‘ideal’ types of PB and their diachronic constituent phases. The results provide insights for both scholars and policy makers on the key features and drivers of citizen participation through PB. © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

PurposeThe paper aims to offer a viewpoint on how governmental budgeting needs to be reconsidered after the COVID-19 outbreak.Design/methodology/approachBuilding on extant research, and drawing on the Italian context, the paper provides reflections on four interrelated aspects: (1) how budgeting and reporting processes and formats are being modified; (2) how budgeting may enhance governments' financial resilience; (3) how citizens are involved in the budgeting cycles and (4) how emergency responses may produce opportunities for corruption.FindingsTo tackle COVID-19 related challenges, budgeting, rebudgeting, reporting processes and formats need to be reconsidered and supported by the development of new competencies. Governments will need to put stronger emphasis on the anticipatory and coping roles of budgeting to reduce public organizations' exposure to shocks and support governmental resilience. The involvement of citizens has proven critical to face the pandemic and will become increasingly relevant due to the financial impacts of COVID-19 on future public service provision. Greater attention to the risks of increased corruption is also needed.Originality/valueDrawing lessons from one of the countries most hit by COVID-19, the paper offers a viewpoint on a timely topic of international relevance by looking in an integrated way at interrelated topics such as budgeting, rebudgeting, reporting, financial resilience, coproduction and corruption.

The United Nations (UN) is challenging organizations to integrate the 2030 Sustainable Devel- opment Goals (SDGs) into their strategies and operations. The International Integrated Report- ing Framework (IIRC Framework) also supports these goals, enabling organizations to incorporate financial and non-financial disclosures in one report. We present a longitudinal ana- lysis of an Italian university’s adoption of both the UN SDGs and the IIRC Framework. The analysis allows us to understand the “why” and “how” of one organization’s journey in con- structing strategies, plans, and operations. Our findings are valuable for both academics and prac- titioners seeking insights into ways to conform with the SDGs and adopt the IIRC Framework.

Purpose The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR. Design/methodology/approach The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published. Findings The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation. Originality/value The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.

PurposePublic financial management has been characterized by the implementation of several innovations and reforms that embrace different areas and scope. These reforms aim at expenditure rationalization and efficiency enhancement, as well as the improvement of accountability and performance. Despite research having already paid attention to these innovations and reforms, the strengths, weaknesses, opportunities and threats empirically faced by public sector organizations still need to be investigated. This editorial introduces the special issue by emphasizing on the lessons that can be learned from past reform experiences.Design/methodology/approachThe editorial synthesizes some of the findings of the previous literature and evidences the necessity of both successful and unsuccessful stories, presenting a future agenda of research which emphasizes the use of case studies as a suitable method to get insights out of multiple experiences.FindingsThe four articles presented in this special issue, covering the topics of accrual accounting adoption, the use of financial statements by councilors, the use of performance information by politicians and the outsourcing of auditing in local governments, provide an overview of the efforts and challenges faced by public administrations by analyzing the influence of the institutional context, the relevance of political implications and their practical footprint.OriginalityIn this special issue, four successful stories that touch upon multiple facets of public financial management in different country contexts are discussed, and they signal important takeaway messages for further reforms.

Purpose This paper aims to explore the emerging phenomenon of integrated reporting (IR) in the context of state-owned enterprises (SOEs) and proposes a longitudinal analysis of the level of IR disclosure (IRD) provided by a sample of European SOEs for the period 2013–2017, in accordance with IR framework requirements. The study also proposes an analysis of the possible explanatory factors driving the level of IRD. Specific attention is devoted to examine the influence exerted by the public ownership on the level of IRD provided by SOEs. Design/methodology/approach The IRs published by a balanced sample of 18 European SOEs between 2013 and 2017 were examined through a manual content analysis. Several analyzes were performed to assess the relationship between the level of IRD provided by SOEs and some possible determinants. Findings Results show an increasing level of disclosure during the observed period, confirming the relevance of IR as a tool for transparency and accountability within the context of SOEs. Statistical analyzes show that government ownership, external assurance, investor protection and global reporting initiative guidelines adoption positively affect the level of IRD, while SOE size exerts a negative influence. Originality/value As this paper examines a context which has been under-investigated, it presents fresh knowledge about the evolution of IR adoption by European SOEs. Furthermore, this paper identifies some of the explanatory factors that drive the preparation of IR, thus providing international integrated reporting council, policymakers and standard-setters with the relevant information for inclusion in specific guidelines for IR by SOEs.

Continuing in the perspective of comparative public sector accounting research suggested by Chan et al. (1996), the articles in this annual issue focus on the effects of some public finance management (PFM) reforms. Based on empirical research, the articles provide the reader with interesting insights on what happens once reforms have been implemented.

Based on the legitimacy theory, the study enhances the understanding of disclosure practices of European companies operating in the energy sector regarding the adherence to Sustainable Development Goals (SDGs). Toward this end, the study analyses how SDGs reporting is evolving and what are the most addressed SDGs in the context of European energy sector companies. The paper's ultimate contribution is to dive deep into how such companies disclose their contributions to the SDGs to determine whether they adopt a substantive or merely symbolic approach to corporate legitimacy. To address the research objectives, a content analysis has been performed on non-financial reports published by a sample of 15 European energy sector companies included in the Global Reporting Initiative database as SDGs reporters for the period 2017–2019. Our findings suggest that while SDGs are becoming an integral part of corporate disclosure, symbolic rather than substantial changes appear to prevail, calling for actions from legislators and policy-makers.

The change in the public university setting in the last few decades, with the wave of New Public Management (NPM) logics and neo-liberal imperatives supported by a mode of regulation based on “fabrication” (Ball, 2000), commodification (Radin, 2001) and performativity (Lyotard, 1984), has led to a drastic reduction of public funds, managerialization and dramatic cut in costs, while obnubilating the idea that public universities produce public goods.

Harmonization of public sector accounting is attracting increasing attention from scholars and practitioners. A focal component of this phenomenon is the setting of accounting standards, whose legitimacy is paramount to their application. As participation by constituents is considered fundamental for ensuring this legitimacy, in this study, we focus on participation through comment letters in the due process. In particular, we explore the type of respondents, their geographical area, their agreement/disagreement with the documents prepared by the International Public Sector Accounting Standards Board (IPSASB) and the issues of importance to them, through an analysis of the comment letters submitted for six projects launched over the period 2017–2020 by the IPSASB. Furthermore, we analyze some factors that may affect countries’ participation in the due process. The analysis enriches our understanding of the IPSASB’s due process and provides relevant insights for the growing research into accounting standard-setting.

The public sector accounting harmonization process that started in the European Union in the aftermath of the financial crisis led the European Commission to launch a project for the development of a set of European Public Sector Accounting Standards (EPSAS). This paper analyses the process and the decision-making around development of the EPSAS through the lens of the garbage can model (Cohen, M. D., March, J. G., & Olsen, J. P. (1972). A garbage can model of organizational choice. Administrative Science Quarterly, 17(1), 1–25). More specifically, by identifying problems, participants, solutions, and choice opportunities, it discusses why the development of the EPSAS is taking so long and why the process does not seem to be progressing as planned. To this end, documents related to the process of EPSAS development are analyzed. The results provide evidence of problematic preferences and fluid participation possibly coupled with flight decisions—three elements of the garbage can model. Postponing decisions can be an option to dampen reluctance. The more the public sector becomes accustomed to the International Public Sector Accounting Standards (IPSAS) by adopting IPSAS-like accrual accounting standards while waiting for the completion of the EPSAS, the less resistance there might be to moving to accrual accounting standards. However, at the same time, an imminent change to a new set of EPSAS standards might become less plausible if changes demand extra reform.

The long-standing collaboration between Public Money & Management (PMM) and the CIGAR Network has resulted in an important new initiative: this first CIGAR annual issue. The CIGAR Board has agreed with PMM’s editors and publisher to publish one issue per year presenting articles that had their origins in the conferences, workshops and debates organized by the CIGAR Network, and will therefore be fully devoted to the themes that CIGAR’s scholars are focusing on. We open this PMM–CIGAR dialogue by explaining the history of our scholarly society, its aims, achievements and its areas of interest. But, first and foremost, we would like to express our sincere gratitude for the contribution of our anonymuous reviewers. Thank you for allowing us to rely on your professional and academic support. This issue would not have been possible without your participation., peer-reviewed

This paper investigates how much of a voice academics have had to date in the development of the European Public Sector Accounting Standards (EPSAS). The authors found that the role of academics has been minimal. This situation deprives standard-setting of being informed by empirical research which is considered to be unbiased, rigorously crafted, grounded in the theory and can better legitimate the standards. The paper offers an original analysis of the process used by the EC for the harmonization of public sector accounting and explains why academic involvement in standard-setting is so important.

La scelta di analizzare l’argomento oggetto della presente trattazione, pur deri-vando da un interesse di ricerca personale, sviluppato in particolare negli ultimi anni, presenta alcuni elementi di collegamento con i temi trattati dal Prof. Lucia-no Marchi nella suaLectio Magistralis che si è tenuta a ottobre 2019 presso l’Università di Pisa . L’informazione aziendale non può essere limitata alla di-mensione economico-finanziaria: tale esigenza ormai diventata un “imperativo categorico, è avvertita in misura crescente sia dal business che dalla finanza e ciò si riflette indubbiamente anche nell’ambito dei sistemi di controllo e di revisione. L’analisi, per quanto sommaria, della tematica dell’informativa non finanzia-ria e del controllo richiama inoltre la contrapposizione fra dimensione interna e esterna. Il Prof. Marchi era solito, nelle sue lezioni e spesso anche nei suoi di-scorsi introduttivi in sede di apertura di molti convegni, richiamare e spesso enfa-tizzare la contrapposizione fra controllo “interno” e controllo “esterno” e in gene-rale fra dimensione “interna” ed “esterna” in ambito aziendale. Devo ammettere che tale distinzione mi appariva un po' semplicistica: negli ultimi anni mi sono invece resa conto che stavo commettendo un grande errore non soltanto per l’effettiva rilevanza della distinzione ma anche perché, in riferimento all’informativa non finanziaria, tale contrapposizione assume una particolare ri-levanza tanto da stimolare molteplici ricerche, anche a livello internazionale. Si assiste infatti ad un costante richiamo negli studi, sia di reportistica che di con-trollo aziendale, alla contrapposizione fra dimensione “interna” ed “esterna”, do-ve indubbiamente la crescente importanza degli interessi degli stakeholder esterni ha svolto un ruolo determinante. Richiamando la sua Lectio Magistralis infatti il Prof. Marchi sottolinea quanto l’evoluzione del sistema di controllo interno “nella direzione del risk management, da un lato, e della responsabilità sociale, dall’altro, analogamente, può essere interpretata come la necessaria integrazione fra gli interessi interni e quelli esterni dei creditori, dei lavoratori e della comunità sociale.” Il Prof. Marchi afferma quindi la necessità di una sempre maggiore in-tegrazione della dimensione economica e sociale nei sistemi di controllo interno: tale considerazione, sicuramente condivisibile, nel presente capitolo verrà traslata nell’ambito delle informazioni non finanziarie (NFI) e del relativo controllo. Il presente capitolo è strutturato nel seguente modo: il paragrafo 1.2. descrive in estrema sintesi le caratteristiche delle NFI per poi passare ad approfondire al-cuni aspetti relativi al controllo interno ed esterno relativo al reporting non finanziario. Il paragrafo 1.3. offre una sintesi di alcuni studi internazionali sulla tematica della assurance delle NFI e infine il paragrafo 1.4 riporta alcune considera-zioni conclusive.