IPSAS AND FINANCIAL ACCOUNTABILITY RELATIONSHIP IN PUBLIC FINANCE MANAGEMENT
Keywords:
Accountability, Effective Decision Making
Abstract
This study focuses on the pivotal role of International Public Sector Accounting Standards in promoting financial accountability. It rests on the framework of Agency theory, which has contributed to the understanding of officeholders’ roles in public governance and the need for stewardship of an officeholder-agent to the constituents. It employed a survey research design, which ensures the study’s ethical robustness. A random sampling technique guides the study’s population representativeness, using a sample of 100 professional accountants. The targeted population consists of the appropriate, informed practitioners in the study area. The setting is that of Accountants based on their role in a network of social interactions in governance. The study employs descriptive statistics, frequencies, and Pearson correlation coefficient statistics (r) for data analysis. The findings reveal that the timeliness of financial information systems has a negative, albeit not statistically significant, relationship with effective decision-making and officeholder stewardship at a 0.05 level of significance. This result deemphasises the importance of the IPSAS application, as findings show that without it, effective decision-making and officeholder stewardship is consistent with accountability principles. The findings substantiate the contrasting views about the usefulness of IPSAS in financial reporting. IPSASB and accounting scholars could dig deeper into the causes of these discrepancies despite their assertions on the benefits of IPSAS. Based on the findings, this study recommends that the Government uphold its consistent establishment’s work ethic, which promotes accountability. These recommendations provide a clear path for future policy actions on credible financial reporting in the context of constructive patriotism.
References
Abata, M. A. (2022). The effects of IPSAS on financial reporting quality of local government in Lagos State. FUOYE Journal of accounting and management, 5(2).
Abdulkarim, M. E., Umlai, M. I., & Al-Saudi, L. F. (2023). Culture, language, and accounting reform: a new perspective on IPSAS implementation. Journal of Accounting & Organizational Change, 19(2), 376-400.
Adams, M. B. (1994). Agency theory and the internal audit. Managerial auditing journal, 9(8), 8-12.
Ademola, O. A., Adegoke, A. K., & Oyeleye, A. O. (2017). Impact of International Public Sector Accounting Standards (IPSASs) Adoption on Financial Accountability in Selected Local Governments of Oyo State, Nigeria. Asian Journal of Economics, Business and Accounting, 3(2), 1 – 9.
Adeyemo, K. A., Ajibolade, S., Uwuigbe, U., & Uwuigbe, O. R. (2017). Mandatory adoption of International Financial Reporting Standards (IFRS) by Nigerian Listed Banks: Any implication for value relevance? https://core.ac.uk/download/85162331.pdf
Akinleye, G. T., & Alaran-Ajewole, A. P. (2018). Effect of International Public Sector Accounting Standards (IPSASs) on Information Delivery and Quality in Nigeria. Research Journal of Finance and Accounting, 9(6), 147-163.
Al-Faryan, M. A. S. (2024). Agency theory, corporate governance and corruption: an integrative literature review approach. Cogent Social Sciences, 10(1), 2337893.
Amor, D. B., & Ayadi, S. D. (2019). The profile of IPSAS-adopters. Accounting and Management Information Systems, 18(2), 262-282.
Atuilik, W. A., & Salia, H. (2019). Impact of IPSAS adoption on transparency and accountability in managing public funds in developing countries: Evidence from Liberia. Journal of Accounting and Taxation, 11(6), 99-110.
Baiman, S. (1982). Agency Research in Managerial Accounting: A Survey. Journal of Accounting Literature, 1(1), 154-213.
Castañeda-Rodríguez, V. (2022). Is IPSAS implementation related to fiscal transparency and accountability? BAR-Brazilian Administration Review, 19, e210071.
Christensen, L. B., Johnson, B., Turner, L. A., & Christensen, L. B. (2015). Research methods, design, and analysis. 12th edition, Pearson, New York.
Diansari, R. E., Musah, A. A., & Binti Othman, J. (2023). Factors affecting village fund management accountability in Indonesia: The moderating role of prosocial behaviour. Cogent Business & Management, 10(2). https://doi.org/10.1080/23311975.2023.2219424
Duenya, I. M., Upaa, J. U., & Tsegba, I. N. (2017). Impact of International Public Sector Accounting Standards adoption on Accountability in public sector financial reporting in Nigeria. Archives of Business Research, 5(10), 41-56. https://doi.org/10.14738/abr.510.3693
Ejekwonyilo, A. (2021). How Nigeran Banks Helped Maina to Steal Pensioners N2 Billion. Premium Times November 8 premiumtimesng. com/news/headlines/494175-how-nigerianbanks-helped-maina-to-steal-pensioners-n2.
Eromosele, F. (2021). Anti-graft Agency has Convicted Pension Fraud to the Tune of N157 Billion. Vanguard October 5, vanguardngr.com/2021/10/just-in-nigerias-pension-fraud-hitsn157bn-efcc/
Flora, D. B. (2020). Your coefficient alpha is probably wrong, but which coefficient omega is right? A tutorial on using R to obtain better reliability estimates. Advances in Methods and Practices in Psychological Science, 3(4), 484-501.
Fu, X., Wang, X., & Xian, Y. (2023). Enhancing Image Encryption with the Kronecker xor Product, the Hill Cipher, and the Sigmoid Logistic Map. Applied Sciences, 13(6), 4034.
Gomes, P., Brusca, I., Fernandes, M. J., & Vilhena, E. (2023). The IPSAS implementation and the use and usefulness of accounting information: a comparative analysis in the Iberian Peninsula. Journal of Public Budgeting, Accounting & Financial Management, 35(1), 12-40.
Harun, H., Eggleton, I. R., & Locke, S. (2021). An integrated model of IPSAS institutionalisation in Indonesia: a critical study. International Journal of Public Sector Management, 34(2), 155-170.
Williamson, C. D. (2004). The development of stewardship relationships between managers and their principals: A study of the effect of three organizational/cultural variables. Regent University.
Idoko, F. I., Teru, S. P., & Aminu, M. T. (2018). International public sector accounting standards (IPSAS) Nigeria as a correlate to transparency and accountability. Journal of Finance and Accounting, 6(5), 110-116.
Imohiosen, D., & Adeyefa, A. (2024). Fraud and Corruption in Nigeria: A historical investigation and an overview of the theory of punishment. Nigerian Journal of Management, 25 (1b), 347-358. https://nigerianjournalofmanagementsciences.com
International Budget Partnership. (2015). Open budget survey 2015. Retrieved from http://www.internationalbudget.org/wp-content/uploads/OBS2015-Report-English.pdf
IPSASB. (2023). Handbook of international public sector accounting pronouncements. https://www.ipsasb.org
Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate Governance (pp. 77-132). Gower.
Kalkbrenner, M. T. (2021). Alpha, Omega, and H Internal Consistency Reliability Estimates: Reviewing These Options and When to Use Them. Counseling Outcome Research and Evaluation, 14(1), 77–88. https://doi.org/10.1080/21501378.2021.1940118
Kartiko, S. W., Rossieta, H., Martani, D., & Wahyuni, T. (2018). Measuring accrual-based IPSAS implementation and its relationship to central government fiscal transparency. BAR-Brazilian Administration Review, 15, e170119.
Kuphanga, D. (2024). Questionnaires in Research: Their Role, Advantages, and Main Aspects. 10.13140/RG.2.2.15334.64325.Retrieved on December 15, 2024, from https://www.researchgate.net/publication/378868278_
Lenz, G. S. (2012). Follow the leader?: how voters respond to politicians' policies and performance. University of Chicago Press.
MacAuthur Foundation. (2022). $19.2 Million to Strengthen Nigeria’s Investigative Journalism and Independent Media Ecosystem to Counter Corruption. Retrieved on November 20, 2024 from https://www.macfound.org/press/press-releases/$192-million-to-strengthen-nigeria
McDermott, P. (2010). Building open government. Government Information Quarterly, 27(4), 401-413.
Mnif, Y., & Gafsi, Y. (2020). A contingency theory perspective on the analysis of central government accounting disclosure under International Public Sector Accounting Standards (IPSAS). Meditari Accountancy Research, 28(6), 1089-1117.
Ogbuagu, N. M., & Onuorah, J. K. J. (2019). Effect of IPSAS adoption on accountability and transparency in the Nigerian public sector organizations. Journal of accounting and financial management, 5(3), 65-80.
Okoye, E. I. & Ani, W. U. (2004). Analysis of Government and Public Sector Accounting, Nimo: Rex Charles and Patrick Limited.
Olaoye, F. O., & Talabi, A. O. (2018). International Public Sector Accounting Standards (IPSAS) and credibility of financial reporting in Nigeria public sector: an improvement or a ruse. Research Journal of Finance and Accounting, 9(14), 68-74.
Olurankinse, F. (2016). Assessment of the level of awareness and adoption of international public sector accounting standards (IPSAS) in the curriculum of accounting education in selected tertiary institutions in Ondo and Ekiti states Nigeria. European Journal of Business, Economics and Accountancy Vol. 4, No. 5.
Ordu, C. U. & Ogbonna, F. I. (2024). Tax evasion and Tax revenue evidence from Federal Inland Revenue Services. Nigerian Journal of Management, 25 (1b), 480 - 494. https://nigerianjournalofmanagementsciences.com
Oyewobi, I., & Salawu, R. (2024). Determinants of the Adoption of International Public Sector Accounting Standards in Lagos State. 3. 57-65.
Parry-Michael, M., & Wynne, A. (2009). The cash basis IPSAS: An alternative view. International Journal of Government Financial Management, 23.
Patrick, E. A., Danladi, O. A., Caleb, A. J., & Linda, J. U. (2017). Accountants’ perceptions of IPSAS application in Nigerian public sector financial management and reporting. Journal of Economics, Management and Trade, 19(3), 1-22.
Peat, M., Svec, J., & Wang, J. (2015). The effects of fiscal opacity on sovereign credit spreads. Emerging Markets Review, 24(September), 34-45. https://doi.org/10.1016/j.ememar.2015.05.001
PricewaterhouseCoopers. (2014, August 1). Collection of information related to the potential impact, including costs, of implementing accrual accounting in the public sector and technical analysis of the suitability of individual IPSAS standards. Retrieved from http://www.pwc.be/en/publications/2014/epsas_oct_2014.pdf
Raphael, E., Jeremiah, M., & Jeremiah, O. (2020). Accountability in the Public Sector: The Role of Professional Accountants in the Present Democracy in Nigeria. European Journal of Business and Management Research. 5. 10.24018/ejbmr.2020.5.1.199.
Slama, F. B. (2024). International Public Sector Accounting Standards and economic growth: An international study of IPSAS adoption and experience. Journal of Accounting and Management Information Systems, 23(3), 483-506.
Tawiah, V. (2023). The impact of IPSAS adoption on corruption in developing countries. Financial Accountability & Management, 39(1), 103-124.
Tolyemi, S. T., Inyada, S., & Ibitoye, T. T. (2020). Effect of IPSAS on accountability and transparency in selected states of Nigeria. In Proceedings of the 7th Annual International Academic Conference on Accounting and Finance Disruptive Technology: Accounting Practices, Financial and Sustainability Reporting.
Tormusa, D. O., & Idom, A. M. (2016). The Impediments of Corruption on the Efficiency of Healthcare Service Delivery in Nigeria. Retrieved on November 20 . 2024 from https://doi.org/10.18785/ojhe.1201.03
Transparency International. (2024). Corruption Perceptions Index-Nigeria data. Retrieved on November 20, 2024 from https://www.transparency.org/en/countries/nigeria
Turnbull, G. K., Waller, B. D., & Wentland, S. A. (2022). Mitigating agency costs in the housing market. Real Estate Economics, 50(3), 829-861.
UNECA. (2023). Quality assurance policy. Retrieved on November 20, 2024 from https://repository.uneca.org/handle/10855/50000?show=full
Wilkinson, M. D. (2016). The FAIR Guiding Principle for Scientific Data Management and Stewardship: Comment.
Yakubu, D. (2020). 32% Nigerians Paid Bribe for Public Service Recruitment in 2019” Vanguard February 2020 https://www.vanguardngr.com/2020/02/32-nigerians-paid-bribe-for-public-service-recruitment-in-2019-%E2
Yamane, T. (1967). Statistics: An Introductory Analysis, (2nd ed.). New York, NY:
Abdulkarim, M. E., Umlai, M. I., & Al-Saudi, L. F. (2023). Culture, language, and accounting reform: a new perspective on IPSAS implementation. Journal of Accounting & Organizational Change, 19(2), 376-400.
Adams, M. B. (1994). Agency theory and the internal audit. Managerial auditing journal, 9(8), 8-12.
Ademola, O. A., Adegoke, A. K., & Oyeleye, A. O. (2017). Impact of International Public Sector Accounting Standards (IPSASs) Adoption on Financial Accountability in Selected Local Governments of Oyo State, Nigeria. Asian Journal of Economics, Business and Accounting, 3(2), 1 – 9.
Adeyemo, K. A., Ajibolade, S., Uwuigbe, U., & Uwuigbe, O. R. (2017). Mandatory adoption of International Financial Reporting Standards (IFRS) by Nigerian Listed Banks: Any implication for value relevance? https://core.ac.uk/download/85162331.pdf
Akinleye, G. T., & Alaran-Ajewole, A. P. (2018). Effect of International Public Sector Accounting Standards (IPSASs) on Information Delivery and Quality in Nigeria. Research Journal of Finance and Accounting, 9(6), 147-163.
Al-Faryan, M. A. S. (2024). Agency theory, corporate governance and corruption: an integrative literature review approach. Cogent Social Sciences, 10(1), 2337893.
Amor, D. B., & Ayadi, S. D. (2019). The profile of IPSAS-adopters. Accounting and Management Information Systems, 18(2), 262-282.
Atuilik, W. A., & Salia, H. (2019). Impact of IPSAS adoption on transparency and accountability in managing public funds in developing countries: Evidence from Liberia. Journal of Accounting and Taxation, 11(6), 99-110.
Baiman, S. (1982). Agency Research in Managerial Accounting: A Survey. Journal of Accounting Literature, 1(1), 154-213.
Castañeda-Rodríguez, V. (2022). Is IPSAS implementation related to fiscal transparency and accountability? BAR-Brazilian Administration Review, 19, e210071.
Christensen, L. B., Johnson, B., Turner, L. A., & Christensen, L. B. (2015). Research methods, design, and analysis. 12th edition, Pearson, New York.
Diansari, R. E., Musah, A. A., & Binti Othman, J. (2023). Factors affecting village fund management accountability in Indonesia: The moderating role of prosocial behaviour. Cogent Business & Management, 10(2). https://doi.org/10.1080/23311975.2023.2219424
Duenya, I. M., Upaa, J. U., & Tsegba, I. N. (2017). Impact of International Public Sector Accounting Standards adoption on Accountability in public sector financial reporting in Nigeria. Archives of Business Research, 5(10), 41-56. https://doi.org/10.14738/abr.510.3693
Ejekwonyilo, A. (2021). How Nigeran Banks Helped Maina to Steal Pensioners N2 Billion. Premium Times November 8 premiumtimesng. com/news/headlines/494175-how-nigerianbanks-helped-maina-to-steal-pensioners-n2.
Eromosele, F. (2021). Anti-graft Agency has Convicted Pension Fraud to the Tune of N157 Billion. Vanguard October 5, vanguardngr.com/2021/10/just-in-nigerias-pension-fraud-hitsn157bn-efcc/
Flora, D. B. (2020). Your coefficient alpha is probably wrong, but which coefficient omega is right? A tutorial on using R to obtain better reliability estimates. Advances in Methods and Practices in Psychological Science, 3(4), 484-501.
Fu, X., Wang, X., & Xian, Y. (2023). Enhancing Image Encryption with the Kronecker xor Product, the Hill Cipher, and the Sigmoid Logistic Map. Applied Sciences, 13(6), 4034.
Gomes, P., Brusca, I., Fernandes, M. J., & Vilhena, E. (2023). The IPSAS implementation and the use and usefulness of accounting information: a comparative analysis in the Iberian Peninsula. Journal of Public Budgeting, Accounting & Financial Management, 35(1), 12-40.
Harun, H., Eggleton, I. R., & Locke, S. (2021). An integrated model of IPSAS institutionalisation in Indonesia: a critical study. International Journal of Public Sector Management, 34(2), 155-170.
Williamson, C. D. (2004). The development of stewardship relationships between managers and their principals: A study of the effect of three organizational/cultural variables. Regent University.
Idoko, F. I., Teru, S. P., & Aminu, M. T. (2018). International public sector accounting standards (IPSAS) Nigeria as a correlate to transparency and accountability. Journal of Finance and Accounting, 6(5), 110-116.
Imohiosen, D., & Adeyefa, A. (2024). Fraud and Corruption in Nigeria: A historical investigation and an overview of the theory of punishment. Nigerian Journal of Management, 25 (1b), 347-358. https://nigerianjournalofmanagementsciences.com
International Budget Partnership. (2015). Open budget survey 2015. Retrieved from http://www.internationalbudget.org/wp-content/uploads/OBS2015-Report-English.pdf
IPSASB. (2023). Handbook of international public sector accounting pronouncements. https://www.ipsasb.org
Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate Governance (pp. 77-132). Gower.
Kalkbrenner, M. T. (2021). Alpha, Omega, and H Internal Consistency Reliability Estimates: Reviewing These Options and When to Use Them. Counseling Outcome Research and Evaluation, 14(1), 77–88. https://doi.org/10.1080/21501378.2021.1940118
Kartiko, S. W., Rossieta, H., Martani, D., & Wahyuni, T. (2018). Measuring accrual-based IPSAS implementation and its relationship to central government fiscal transparency. BAR-Brazilian Administration Review, 15, e170119.
Kuphanga, D. (2024). Questionnaires in Research: Their Role, Advantages, and Main Aspects. 10.13140/RG.2.2.15334.64325.Retrieved on December 15, 2024, from https://www.researchgate.net/publication/378868278_
Lenz, G. S. (2012). Follow the leader?: how voters respond to politicians' policies and performance. University of Chicago Press.
MacAuthur Foundation. (2022). $19.2 Million to Strengthen Nigeria’s Investigative Journalism and Independent Media Ecosystem to Counter Corruption. Retrieved on November 20, 2024 from https://www.macfound.org/press/press-releases/$192-million-to-strengthen-nigeria
McDermott, P. (2010). Building open government. Government Information Quarterly, 27(4), 401-413.
Mnif, Y., & Gafsi, Y. (2020). A contingency theory perspective on the analysis of central government accounting disclosure under International Public Sector Accounting Standards (IPSAS). Meditari Accountancy Research, 28(6), 1089-1117.
Ogbuagu, N. M., & Onuorah, J. K. J. (2019). Effect of IPSAS adoption on accountability and transparency in the Nigerian public sector organizations. Journal of accounting and financial management, 5(3), 65-80.
Okoye, E. I. & Ani, W. U. (2004). Analysis of Government and Public Sector Accounting, Nimo: Rex Charles and Patrick Limited.
Olaoye, F. O., & Talabi, A. O. (2018). International Public Sector Accounting Standards (IPSAS) and credibility of financial reporting in Nigeria public sector: an improvement or a ruse. Research Journal of Finance and Accounting, 9(14), 68-74.
Olurankinse, F. (2016). Assessment of the level of awareness and adoption of international public sector accounting standards (IPSAS) in the curriculum of accounting education in selected tertiary institutions in Ondo and Ekiti states Nigeria. European Journal of Business, Economics and Accountancy Vol. 4, No. 5.
Ordu, C. U. & Ogbonna, F. I. (2024). Tax evasion and Tax revenue evidence from Federal Inland Revenue Services. Nigerian Journal of Management, 25 (1b), 480 - 494. https://nigerianjournalofmanagementsciences.com
Oyewobi, I., & Salawu, R. (2024). Determinants of the Adoption of International Public Sector Accounting Standards in Lagos State. 3. 57-65.
Parry-Michael, M., & Wynne, A. (2009). The cash basis IPSAS: An alternative view. International Journal of Government Financial Management, 23.
Patrick, E. A., Danladi, O. A., Caleb, A. J., & Linda, J. U. (2017). Accountants’ perceptions of IPSAS application in Nigerian public sector financial management and reporting. Journal of Economics, Management and Trade, 19(3), 1-22.
Peat, M., Svec, J., & Wang, J. (2015). The effects of fiscal opacity on sovereign credit spreads. Emerging Markets Review, 24(September), 34-45. https://doi.org/10.1016/j.ememar.2015.05.001
PricewaterhouseCoopers. (2014, August 1). Collection of information related to the potential impact, including costs, of implementing accrual accounting in the public sector and technical analysis of the suitability of individual IPSAS standards. Retrieved from http://www.pwc.be/en/publications/2014/epsas_oct_2014.pdf
Raphael, E., Jeremiah, M., & Jeremiah, O. (2020). Accountability in the Public Sector: The Role of Professional Accountants in the Present Democracy in Nigeria. European Journal of Business and Management Research. 5. 10.24018/ejbmr.2020.5.1.199.
Slama, F. B. (2024). International Public Sector Accounting Standards and economic growth: An international study of IPSAS adoption and experience. Journal of Accounting and Management Information Systems, 23(3), 483-506.
Tawiah, V. (2023). The impact of IPSAS adoption on corruption in developing countries. Financial Accountability & Management, 39(1), 103-124.
Tolyemi, S. T., Inyada, S., & Ibitoye, T. T. (2020). Effect of IPSAS on accountability and transparency in selected states of Nigeria. In Proceedings of the 7th Annual International Academic Conference on Accounting and Finance Disruptive Technology: Accounting Practices, Financial and Sustainability Reporting.
Tormusa, D. O., & Idom, A. M. (2016). The Impediments of Corruption on the Efficiency of Healthcare Service Delivery in Nigeria. Retrieved on November 20 . 2024 from https://doi.org/10.18785/ojhe.1201.03
Transparency International. (2024). Corruption Perceptions Index-Nigeria data. Retrieved on November 20, 2024 from https://www.transparency.org/en/countries/nigeria
Turnbull, G. K., Waller, B. D., & Wentland, S. A. (2022). Mitigating agency costs in the housing market. Real Estate Economics, 50(3), 829-861.
UNECA. (2023). Quality assurance policy. Retrieved on November 20, 2024 from https://repository.uneca.org/handle/10855/50000?show=full
Wilkinson, M. D. (2016). The FAIR Guiding Principle for Scientific Data Management and Stewardship: Comment.
Yakubu, D. (2020). 32% Nigerians Paid Bribe for Public Service Recruitment in 2019” Vanguard February 2020 https://www.vanguardngr.com/2020/02/32-nigerians-paid-bribe-for-public-service-recruitment-in-2019-%E2
Yamane, T. (1967). Statistics: An Introductory Analysis, (2nd ed.). New York, NY:
Published
2025-11-22
How to Cite
BABATUNDE, S. A., ADERIBIGBE, A. A., & FADAIRO, I. O. (2025). IPSAS AND FINANCIAL ACCOUNTABILITY RELATIONSHIP IN PUBLIC FINANCE MANAGEMENT. Global Journal of Accounting, 11(2), 34-43. Retrieved from https://gja.unilag.edu.ng/article/view/2846
Section
Articles
