Advancing the accrual accounting reform in Greece

The global increase in fiscal deficits and rapid debt growth has driven governments to reform their public sector accounting systems for better financial transparency and accountability.

The adoption of International Public Sector Accounting Standards (IPSAS) and, within the EU, the development of European Public Sector Accounting Standards (EPSAS) aim to ensure high‑quality, comparable financial reporting among countries.

Greece, particularly in the context of its Economic Recovery and Resilience Plan (RRP), is focusing on transitioning to accrual‑based accounting, based on international financial reporting standards. This financial method shows an overview of the financial state as revenues and expenses are recorded when they are earned or incurred and not when the payment is received.

Launched by a presidential decree in 2018, this reform aims at delivering true and fair view by implementing: 

• a new accrual‑based financial accounting framework for the entire General Government;
• a Unified Chart of Accounts;
• new structures for economic, administrative, and functional classifications.

The adoption and implementation of international accounting standards in the public sector in Greece face significant challenges. among which the need for capacity building and training programmes, the establishment of effective implementation and monitoring mechanisms, and the alignment of national regulatory frameworks with international standards.

In this context, the General Accounting Office of the State (GAO) as part of the Ministry of Economy and Finance in Greece requested support from the European Commission in the continuation of the accounting reforms in accordance with international accounting standards.

The project was funded by the European Union via the Technical Support Instrument and implemented by Expertise France. It is following on from a first phase which took place between 2020 and 2022. With this new phase, Greece was able to progress further thanks to technical support and training activities.

Expertise France provided relevant expertise by means of advising in the implementation and coordination of the accounting reforms, and supporting in the area of financial statements’ consolidation.

The main activities of the project aimed to:

• Achieve a comprehensive financial reporting framework defining Greek public sector accounting standards based on international accounting standards for the public sector.
• Establish mechanisms and procedures for the preparation and presentation of the first consolidated financial statements.
• Train central administration officers in International Public Sector Accounting Standards (IPSAS).
• Develop and implement internal communication and awareness approaches, along with the necessary supporting materials.

The Project notably aimed to support the completion of Greece’s General Government Accounting Framework through the development and adoption of necessary additional accounting policies.

In this second phase of the reform, Greece embarked on the collection of General Government reporting entities financial data, to create the first consolidated financial statements due by the end of Q4-2025, in line with Recovery and Resilience Plan Milestone 129.

Further skill development was to be achieved through a training programme addressing Central Administration officials and Directorates General of Financial Services with line-ministries staff. Leveraging the previous "Train the Trainers" programme, the Project was also to enhance the training programmes of the National Centre for Public Administration and Local Government.

Finally, the support also contributed to the development of a communication plan to raise awareness among key stakeholders via events, especially the circa 1.150 entities of the General Government, as a means to addressing change management challenges.