This study examined the benefits and challenges of adopting the International Public Sector Accounting Standards (IPSAS) in the foreign charity organizations working in Ethiopia. The objectives of the study was to provide an insight on the contribution of adopting IPSAS in enhancing the level of accountability, transparency, strengthening the stakeholders perception of the standards and taking educational and professional responsibilities. The population of study was 353 foreign charity organizations and 2 government offices (CHSA and AABE). Using purposive sampling,35 foreign charities organizations and 2 government offices were selected for this study. 75 sample respondents, who were understanding IPSAS's objectives and were responsible for the adoption process, were taken from the above institutions to fill the questionnaire. Before processing the responses, the completed questionnaires were edited for completeness and consistency. The data was then coded to enable the responses to be grouped into various categories. Data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis The main results evidenced that the adoption of IPSAS enhances level of accountability through asset management and transparency in information provided in the financial reports. It was also found that IPSAS adoption is feasible target and clearer understanding of the standard leads to effective implementation