Evaluating Factors Predicting Smooth Transition to the International Public Sector Accounting Standards in Nigeria

Abstract

The study is an evaluation of factors affecting smooth transition from Statement of Accounting Standards to the International Public Sector Accounting Standards (IPSAS) by Nigerian public sector entities. The predictive variables were analyzed using the proxies of public perceptions and attitudes towards IPSAS, skills and competencies of accounting practitioners and adequacies of legal and regulatory frameworks to drive the adoption. Scholars argued that IPSAS will lead to more quality and transparent financial reports in the public sector.The adoption journeys in Nigeria, has being marked with wobbling attempts at cash based to accrual based IPSAS due to unpreparedness and institutional failures leading to several shift of deadline for mandatory adoption. The study employed theoretical framework of institutional adequacy and attitudinal change, and agency theories. Survey research non experimental design aligns with the behaviours of the variables under study and so was adopted. To check for reliability of the instrument, I calculated the Cronbach’s alpha and the bivariate correlation coefficient to determine how closely linked items are with each other in the scale. The result fall along acceptable Cronbach of .76. The use of Likert Scale correlates with its long standing history of reliability in social science research. Descriptive statistics was employed to specify the nature of the variables prior to main effect analysis. Multicollinearity diagnosis was adopted to check for any overlapping relationship between the variables and Z-score statistics to test for outliers in the data set and clean up my data set by testing for all statistical assumptions. Stratified sampling strategy was found most appropriate to draw representative samples from the sampling frames. 640 respondents were sampled with 20 non respond. This represents mere 3.125% as missing data which is considered of no significant effect on the data. Data was analyzed using multiple regressions and Pearson Correlation coefficient to test the hypothesis and assess the relationship between the variables. The result indicates that there exists significant relationship between the independent and dependent variables, and that negative public perception and low political will are strong barriers to successful implementation of same in Nigeria. Respondents held that Nigeria accountant are not skilled and competent to handle the migration to accrual IPSAS and legislative and regulatory framework is not adequate enough to support IPSAS adoption. The study recommends curriculum overhauls, enacting and amendments of relevant laws to accommodate the teaching and regulation of IPSAS adoption in the public service.