The Government of Finland and Spain Case Study Example | Topics and Well Written Essays - 1000 words

The Government of Finland and Spain - Case Study Example The two countries have some disparities in the accounting standards adopted. Moreover, the manner in which the International Public Sector Accounting Standards (IPSAS) are adopted by these countries differ greatly. The level of adoption of the International Public Sector Accounting Standards (IPSAS) in Spain is much slower than that of Finland. In Spain, a very strong legal culture persists where the administrative law is used to administer the public sector. The central government is the accounting regulator and any reforms in accounting standards. Any accounting standards that have to be incorporated in the countries accounting standards have to pass via a process of scrutiny according to Spanish laws. The adoption rate is also slow because the influence from accounting professionals is weaker compared Anglo-Saxon countries (Brusca, Isabel, Vicente, and Danny 440).Looking at Finland, it has a very fast adoption rate as compared to Spain. Finland customs and tradition ensure that th ere is a common law that provides for the diffusion of accounting standards in the country. During the period of New Public Management, the Finnish government was among the first countries to like this type of accounting in the public sector. Also in this era, the Finnish government began to adopt the accrual-based type of accounting (Oulasvirta 277). This accounting model was more based on historical costs. Stressing on the historical cost principle, Finnish government stated its resources at the amount, which the business was acquired.