IMPACT OF INTERNATIONAL PUBLIC SECTOR ACCOUNTINGSTANDARDS (IPSAS) ADOPTION ON THE QUALITY FINANCIALREPORTING IN NIGERIA’S PUBLIC SECTOR

Abstract

The adoption of International Public Sector Accounting Standards (IPSAS) has become a crucial topic in public sector financial management globally. In Nigeria, as in many developing countries, the need for transparent, accountable, and high-quality financial reporting in the public sector has never been more pressing. In the light of this context, this study examined the International Public Sector Accounting Standards (IPSAS) adoption and quality of financial reporting in Nigeria’s public sector. The study objective was to evaluate the impact of IPSAS adoption on transparency and accountability, accuracy and reliability, comparability, timeliness and faithful representation of financial reporting in Nigeria’s Public Sector. The research encompassed a ten-year duration, spanning from 2016-2025. The population of the study comprised all the 1316 Federal Ministries, Departments and Agencies (MDAs) in Nigeria. The study utilized a survey research design, employing mixed sampling strategy of purposive and stratified methods. Purposive sampling was used to select 12 MDAs that are most relevant to the study objectives, while stratified sampling was employed to ensure adequate representation of different category of Staff within each MDA. The respondents consisted of professional accountants, auditors and finance officers at directorate level involved in financial reporting processes. To achieve this purpose, primary data were used. A well-designed questionnaire based on 5 points likert attitudinal scales were administered on the respondents to obtain the studied data, out of which 104 valid responses were received. Descriptive statistics, including means and standard deviations, were calculated to analyse the research data using statistical package for the social sciences (SPSS). The study is underpinned by the principles of New Public Management (NPM) theory which aligns with the research objectives. Findings from the analysis revealed that IPSAS adoption has significantly improved the transparency, accuracy and reliability, comparability and timeliness of financial reporting. The study recommends adequate resource allocation, training and capacity building for relevant staff and mandatory IPSAS implementation across Public Sector entities.