ASSESSMENT OF THE IMPLEMENTATION OF IPSAS-ACCRUAL BASIS OF ACCOUNTING ON PUBLIC SECTOR FINANCIAL REPORTING QUALITY: EVIDENCE FROM LGAs IN KOGI STATE, NIGERIA

Gbenga Ayodele  ADEBAYO; Oloruntoba  OYEDELE; Sunday  OMALE; Motunrayo  OMOLEHIN; Aminat Naomi  BALOGUN

Gbenga Ayodele ADEBAYO Department of Accounting, Confluence University of Science and Technology, Osara
Oloruntoba OYEDELE Department of Finance, Federal University, Lokoja.
Sunday OMALE Department of Accounting, Confluence University of Science and Technology, Osara
Motunrayo OMOLEHIN Department of Accounting, Prince Abubakar Audu University, Anyigba
Aminat Naomi BALOGUN Accounting Programme, Department of Management Sciences, Salem University, Lokoja.

Keywords: IPSAS, Financial Reporting Quality, Public Sector, LGAs, Kogi State

Abstract

Governments need to prepare and publish high quality and transparent financial statements that are reliable and internationally recognized by using the IPSASs or equivalent standards. This is a key feature of democratic responsibility, accountability and reliability towards the public. This paper examines the implication of IPSAs accrual basis of accounting on Public Sector financial reporting quality, evidence from local Government Areas in Kogi State. The study adopted survey research design. The population of the study is 350 staff of the entire twenty-one LGA_Sin Kogi State; while a sample size of 210 using stratified sampling was adopted. 10 questionnaires each were distributed randomly to the staff in the account department and audit unit of the 21 LGA_S in Kogi State, but only 192 Questionnaires were returned, both descriptive (frequencies and percentages) and inferential (multiple regression) statistics were used for the analysis of the data collected with the aid of SPSS 23. The result shows that accrual basis assets reporting exhibited positive and significant effect on government financial reporting quality with p value (0.00) and a coefficient of 0.346; accrual basis liability reporting exhibited positive and significant effect on government financial reporting quality with p value (0.005) and a coefficient of 0.247. The study recommends that implementation of IPSAs increases the level of financial reporting quality, government should provide enabling environment, facilities and enforce implementation of all relevant IPSAs for quality financial reporting; institute monitoring mechanism for adherence.

References

ACCA IPSAS Implementation: Current Issues and Challenges, 2017
Adedeji, Z. A (2024) IPSAS adoption and financial reporting quality in public sector of the South West of Nigeria: Assessment of the marketing risk of contingency factors. American Journal of Human and Social Science Research, 8(2), 21-35
Ashaju, D. K. I., Ilaboya, P. O. J. & Omoye, P. A. S. (2024). International public sector accounting standards implementation resources and government financial reporting quality: The moderating influence of institutional culture. International Journal of Research and Innovation in Social Science, 8(8), 1394–1411. https://doi.org/10.47772/ijriss.2024.8080103
Bello A.D, Ishola J.O & Raheed L-D (2022) The influence of international public sector accounting Standard (ISAS) on financial; reporting quality of public health institutions in Nigeria. Journal of Accounting and Financial Management 8 (4), 39-59
Berthod, O. (2016). Institutional Theory of Organizations. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham.3306-3310 https://doi.org/10.1007/978-3-319-31816-5_63-1
Bolarinde, S.A & Samson, D. A (2024). International public sector accounting standard (IPSAS) adoption and quality of financial reporting of local government council in Lagos state. CPRA International Journal of Economics Business and Management Studies 11 (8)
Cavanagh, J., Flymn S. & Moretti D. (2016) Implementing accrual accounting in public sector. Technical Notes and Manual. International monetary fund.
Deloitte (2017) IPSAS in your pocket. 2017 Edition.
Eke, G.D; Ames, I.J & Gift-Eke, D. (2024) Adoption of international public sector accounting Standards and financial reporting quality in University River State. Journal of Economics, Financial and Management Studies. 7(9), 5653-5662
Elugom, U.F & Onyeks E. E (2023) Impact of IPSAS adoption on the quality of financial reporting (A study of the office of Accountant general of the federation. Sapientia Global Journal of Arts, 6 (4). 313-330
Eniola,V.O; & Memba F (2016) Relationship between Asset Management and Financial Performance of Listed Manufacturing forms in Nigeria. International Journal of social sciences and information technology 2 (9), 1258-1277
Gkouma, Olympia G.; Filos, John (2022) : Assessing the Impact of IPSAS on financial reporting and public management in Greece, SPOUDAI - Journal of Economics and Business, ISSN 2241-424X, University of Piraeus, Piraeus, 72, (1/2), 56-79
Guth, K (2016) Institutional theory. The Sage Encyclopedia of corporate Reputation.
Ismarolı A; Ismajh H & Vokshi N.B (2021). The importance and challenges of the implementation of IPSA accrual bases to the public Sector: the case of KOSOVO. Growing Science, Canada
Said L.M & Katamba A (2024). The influence of financial reporting quality and efficiency in resources utilization on public sector financial performance: Evidence from Tanzania”. Asian Journal of Economics, Business and Accounting 24 (7):135-46. https://doi.org/10.9734/ajeba/2024/v24i71398.
Ogbeide, S.O., Ogunmakin, A.A & Arijeniwa, O, J (2023) Extent of IPSASs Implementation and Quality of Financial Reporting in Ministries, Departments and Agencies (MDAs): An Empirical Investigation from a Developing Country. Fuoye Journal of Accounting and Management 6(1)1-12
Ogiriki, T., Odogu, L. I., & Babatunde, S. D. (2021). International public sector accounting standard (IPSAS) and the quality of financial reporting in federal agencies in Nigeria. International Journal of Advance in Engineering and Management (IJAEM), 3, 713-721 www.ijaem.net
Okpo, S. A. (2019). Implementation of Accrual Based Ipsas in Nigeria: Issues, Challenges and Way Forward. AKSU Journal of Management Sciences (AKSUJOMAS). https://aksujomas.org.ng/articles/19/06/implementation-of-accrual-based-ipsas-in-nigeria-issues-challenges-and-way-forward/
Otuedon, M.A & Ogodogun C.E (2020) Effect of international public sector Accounting study and financial reports relevance and faithful representation. A study of Kaduna state. Journal of Business Economy 11(2), 1-16
Ozor, D.C &Ugweke R. D (2024) Effort of international public sector Accounting standard (IPAS) on reliability of financial reports in Nigeria public sector. Innovations, Nov, 76 March
Sabo J.G, Ugwudioha D. & Wayas J.P (2024) Effect of adoption of international public sector accounting standards and quality of financial reports, in the public sector in Nigeria. Journal of Law and Sustainable Development.
Seiyaibo, C. M. (2020). Has the Adoption of International Public Sector Accounting Standards (IPSAS) Reduced Corruption in the Nigerian Public Sector, International Journal of Academic Research in Accounting, Finance and Management Sciences 10 (1): 189-196.
www.accaglobal.com
Zibaghafa, S. & Okpolosa, M (2024) International Public Sector accounting standard adoption and challenges of implementation in Nigeria. Open Journal of Accounting, Auditing and Finance Research 12 (1)
Zibaghafa, S & Chukwu, G (2024) Public sector accounting standard adoption and quality of financial reporting in higher institutions in Rivers and Bayelsa States Nigeria. European Journal of Accounting, Auditing and Finance Research 12 (3), 1-39
Zucker, L.G (1987) Institutional theories of organization. Annual Review of Sociology 13(9)