Abstract

The main objective of the study was to identify the challenges of IPSAS implementation in the Nigerian Public Sector. This was as a result of low level of accountability and improper application of accounting standards by government institutions. A structured questionnaire was used to elicit information from the various respondents. The population of the study consists of accountants, auditors and cash officers in government ministries, departments and agencies in Abia, Anambra, Enugu, Ebonyi and Imo States. The population was estimated at 8901for the five States. The sample size of 387 was drawn using the stratified sampling technique. The Analysis of Variance (ANOVA) was used for the hypothesis test. The results showed that the challenges that impinge the full implementation of IPSAS in Nigeria include: governments’ unwillingness in terms of political-will towards full IPSAS implementation; statutory adjustment, inadequate funding and institutional commitment among others. It was therefore recommended that there should be adequate funding for the IPSAS implementation projects as most of the Public Sector Entities attributed inability to implement IPSAS Accrual to paucity of funds. Government should also show more political will as well as commitment and support for the accrual basis IPSAS implementation at the Local Government level.

Highlights

  • As the transparency and disclosure of financial information has increased between countries around the world, efforts are being made to increase public confidence in financial reporting

  • The Analysis of Variance (ANOVA) was applied to test the hypothesis stated in a null (H0) form that there are no significant challenges of International Public Sector Accounting Standards (IPSAS) implementation in the Nigerian Public Sector

  • Result from the hypothesis shows that there are no significant differences in the perception of respondents on the challenges of IPSAS implementation in the Nigerian Public Sector

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Summary

Introduction

As the transparency and disclosure of financial information has increased between countries around the world, efforts are being made to increase public confidence in financial reporting. In recent times, even after the implementation of accrual-based IPSAS by some State Governments in Nigeria there still exists contention on the reliability of their financial reports This could be as a result of the infrastructural gap regarding the need for skilled staff that could effectively translate the standards and should report on some specific areas, in the narrative notes accompanying the financial statements to provide detail explanation of the financial data to the users. Another gap could be the need for a paradigm shift in finance culture and mindset to exploit the opportunities presented to drive value. Technical accounting issues and challenges include valuation, depreciation, impairments and fair value of investment property, while the existing technology in some States does not support full IPSAS implementation (Izueke, Onah, Ugwuibe, Okwueze, Agu, Ugwu & Ezeibe, 2020)

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