The European Union announced the formal adoption of European Public Sector Accounting Standards (EPSAS) in 2015. However, it has not specified the date that each country is required to adopt EPSAS. The main driver behind the EPSAS implementation is to ensure uniform and comparable accrual basis accounting practices for all sectors of general government within the EU. This will enhance the quality of the data on which European System of Accounts (ESA) reporting is based, and consequently improves budget surveillance and fiscal monitoring at macro level to enable sound fiscal policy decision-making. Comparability will be improved across Member States, government levels and individual government entities. This is crucial to meet the objectives of fiscal stability and deeper economic and financial integration within the EU.
Certain countries within the EU had already decided to adopt IPSAS prior to the pronouncements of EPSAS and have made substantial progress towards full adoption. The United Kingdom has been applying accrual based standards using IFRS as the basis for a number of years.