Following the Asia crisis of the late 1990s, countries in South Asia embarked on financial management reforms in the private and public sectors. Some of the hardest hit countries were Indonesia, Korea and Thailand, but other countries were affected including Malaysia and the Philippines. Funding from donors such as the IMF and the World Bank required public finance management reforms, including the adoption of accrual accounting standards based on IPSAS.
India, Pakistan, Nepal and Bangladesh adopted standards aligned to cash based IPSAS, without announcing a commitment to adopting accrual based IPSAS. Middle East countries – including Abu Dhabi – have adopted, or are in the process of adopting, accrual based IPSAS. Their primary motivation is to provide greater accountability and transparency to enable the countries to improve their public financial management, particularly as they adjust to changes in the commodity prices on which they depend.