Impact of International Public Sector Accounting Standards (IPSAS) Adoption on Financial Accountability in Selected Local Governments of Oyo State, Nigeria

Abstract

The study evaluated the impact of International Public Sector Accounting Standard (IPSAS) on the financial accountability of selected local governments of Oyo State, Nigeria. The impact of IPSAS adoption on corruption reduction, transparency and accountability in the selected Local Governments were critically examined. The study which adopted survey design collected data using five point likert-scale questionnaires which was administered on sample of 105 Accountants and Internal Auditors in the selected local governments of Oyo State Nigeria. The data was analyzed using descriptive statistics. The hypotheses formulated were tested using chi-square analysis at 5% level of significance. The result of the study showed that adoption of IPSAS increases the level of accountability, transparency and reduces corruption in the selected local governments. This implied that the economy of Nigeria will be better off if IPSAS is fully adopted and implemented.

Factors Influencing Implementation of Accrual Based International Public Sector Accounting Standards in Tanzanian Local Government Authorities

“…In agreement with our findings, past studies concluded that the existence of technical support from qualified accountants adds value in implementation of accrual-based IPSAS [1,27,13,5]. Moreover, Abimbola [60] and Whitefield [27] documented that, there is a need for the government to increase the employment of qualified accountants in the LGAs. This influence successful implementation of accrualbased IPSAS in the LGAs.…”

Application of Government Accounting Standards, Financial Statements Reporting, and Accessibility of Regional Finance Against Accountability for Regional Financial Management (Survey of All SKPDs of Kulon Progo Regency Government)

“…Thus, the application of government accounting standards in the preparation of financial statements will provide assurance that the financial statements prepared have the qualifications of financial information that is useful for the users who need it. The results of this study are in line with Diniz's (2015) research, Abimbola et al (2017), and Mhaka (2014) which stated that government accounting standards have an effect on regional financial accountability.…”

“…Better execution of the presentation of financial statements will have implications for increasing accountability in the financial management of Kulon Progo Regency. The results of this study are in line with the results of Chinedu et al (2016), Chan (2010), Ohaka et al (2016, and Bello in Abimbola (2017). The three studies stated that the presentation of regional financial statements had a positive effect on the accountability of regional financial management.…”

“…Biraud in Chinedu et al (2016) noted that the economic benefits of the adoption of International Public Sector Accounting Standards are that they assist users of financial information to assess and evaluate the accountability for the events and assets reported and stated by the organization and also provide the required information on the effectiveness and efficiency or otherwise the utilization of the resources and affairs enlisted in the financial position. This is in line with the results of Chinedu et al (2016), Chan (2010), Ohaka et al (2016), and Bello in Abimbola (2017). The better the financial statement presentation of a region, the better the financial management accountability of the area.…”

“…Standards (SAP) SAP is a legal basis for local governments in conducting financial management in a transparent and accountable manner, so that accountability can be achieved. A previous research conducted by (Abimbola et al, 2017) showed that adoption of IPSAS increases the level of accountability, transparency, and reduce corruption in the selected local governments. The results of these studies are also in line with the research conducted by Mhaka (2014), which shows that IPSAS adoption enhances and improves the quality of public financial information sector, assets management, and level of accountabilities.…”