Journal of Research Administration

In developing countries, research on public accounting has progressed considerably over the past two decades. These studies mostly concentrate on the role of the International Financial Institutions such as the World Bank and the International Monetary Fund in promoting Neoliberal ideas and practices of New Public Financial Management Reform NPFM. NPFM stress program budgeting and accrual accounting are prerequisites of loan obtainment and, therefore, are incorporated into Structural Adjustment Programs SAPs. Nonetheless, the existing documentations demonstrate the limited effect of such borrowing arrangements on governance, accountability, and economic growth. Two theories are employed to examine public accountancy innovation: Lüder’s contingency model also known as Financial Management Reform Process Model that highlights the influence of contingencies on accounting practices and neo-institutional theory (NIT) that explores how institutions adopt reforms. By integrating these theories together, we developed a theoretical framework for further empirical studies and for interpretation of accounting modernization experiment results in developing countries. This article makes a significant contribution by presenting a framework that enables researchers to explore the key factors influencing both the adoption and implementation of International Public Sector Accounting Standards (IPSASs) through accrual accounting. It thoroughly examines the determinants shaping accounting reforms, providing valuable insights into the barriers that may hinder their successful implementation. Furthermore, it offers a practical perspective for policymakers, practitioners, and scholars, allowing them to adapt the theoretical framework to their respective contexts to enhance financial reporting and strengthen institutional governance.