Assessing Compliance with IPSAS 17 in Public Sector Entities: Evidence from the Patents and Companies Registration Agency (PACRA), Zambia (2023-2024)

International Public Sector Accounting Standards (IPSAS) play a very crucial role in enhancing transparency, accountability, and the value of financial reporting in public sector institutions. Notwithstanding the widespread adoption efforts, empirical evidence on the extent of compliance, especially in developing economies, remains limited. This study assesses compliance levels with IPSAS 17 at the Patents and Companies Registration Agency (PACRA) in Lusaka, Zambia, over the period 2023-2024, with a specific focus on property, plant and equipment (PPE) revaluation procedures, adequacy of disclosure, and the challenges in implementation and adaptation.

Using a descriptive study design, a mixed-methods approach was employed. Data were gathered from 105 participants selected from a population of 143 using purposive and convenience sampling strategies. Quantitative data were analysed using descriptive statistics, while thematic analysis was used to examine qualitative data. The IPSAS 17 framework provided the benchmark for assessing compliance.

The results show that compliance with IPSAS 17 revaluation requirements is generally low to moderate, with notable shortcomings in revaluation frequency and in the treatment of accumulated depreciation. In contrast, compliance with PPE disclosure requirements is comparatively high, mostly in the areas of asset classification, accounting policies and disclosure requirements, although in reconciliation reporting, gaps still persist. The study further identifies significant barriers to compliance, including high implementation costs, inadequate technical capacity, limited training, and the intricacy of IPSAS 17 provisions.
The study concludes that while progress has been made toward IPSAS 17 implementation, important technical and institutional gaps still remain. It contributes to the limited empirical knowledge on IPSAS compliance in Sub-Saharan Africa and offers policy-relevant perceptions for strengthening public sector reporting in Zambia. Recommendations include building technical capacity through targeted training, improving asset management systems, and implementing a more structured IPSAS implementation approach, which is policy-driven.