|
Challenges of Financial Reporting in the Public Sector (Emphasizing on Process Improvement
Using Extensible Business Reporting Language)
|
Mona Parsaei *   |
| Department of Accounting, Faculty of Social and Economic Sciences, Alzahra University , m.parsaei@alzahra.ac.ir |
|
|
Abstract: (30 Views) |
| The Integrated Financial Information Management System plays an important role in governmental financial reporting, enabling informed decision-making by legislative authorities and budget custodians. Among the technologies significantly influencing financial reporting processes is Extensible Business Reporting Language (XBRL). This study aims to identify the challenges associated with financial information management and reporting in the public sector, as well as to explore process improvement through XBRL implementation. The research methodology began with document mining and content analysis of existing reports and records to assess the current state of financial reporting processes. Subsequently, interviews with domain experts were conducted to identify challenges at two levels: reporting challenges within individual public entities and challenges at the Ministry of Economic Affairs and Finance, the entity responsible for preparing consolidated government financial statements and the annual budget performance report. The study further examined limitations of XBRL implementation, critical success factors for XBRL adoption, and dimensions of process improvement facilitated by XBRL. Findings reveal that XBRL can substantially enhance governmental financial reporting processes by enabling real-time monitoring, reducing redundant reporting to multiple stakeholders, facilitating timely preparation of financial statements and managerial reports for government decision-making, improving responsibility measurement accounting, enhancing data analysis capabilities, increasing the reliability of consolidated reports, strengthening data traceability, advancing internal auditing and control mechanisms, streamlining financial data exchange across systems, and optimizing storage, classification, and retrieval of big data. |
|
| Keywords: Extensible Business Reporting Language (XBRL), Financial Reporting, Process Improvement, Public Sector Accounting, financial reporting |
|
|
Full-Text [PDF 1128 kb]
(27 Downloads)
|
|
Type of Study: Applicable |
Subject:
Special
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
