Effects of implementation of International Public Sector Accounting Standards on Nigeria’s financial reporting quality

Abstract

Purpose

The purpose of this paper is to examine the effects of the implementation of the International Public Sector Accounting Standards (IPSAS) on Nigeria’s financial reporting quality.

Design/methodology/approach

The study employed a survey research design to determine the effects of the implementation of the IPSAS on Nigeria’s financial reporting quality. Partial Least Square 3(SmartPLS 3) technique of analysis was applied to achieve the research objective.

Findings

The study found that accountability positively and significantly affects the quality of financial reporting in Nigeria. Specifically, IPSAS has improved the level of accountability, which in turn improved Nigeria’s financial reporting quality.

Research limitations

The study only explored two explanatory variables whereas other variables such as transparency, corruption minimization, comparability and faithful representation were not considered in this study. It is, therefore, recommended that further studies could expand the scope to cover some other variables not included in this paper.

Practical implications

IPSAS-Accrual has engendered the Nigerian Government to launch the Asset Tracking and Management Project (ATMProject) in order to easily track its assets for the purpose of accountability. Thus, accountability was discovered in this study to be the most essential factor to enhance the quality of financial reporting using accrual-based IPSAS in Nigeria.

Social implications

Accountability will impact positively on the lives of Nigerians in relation to the application of public funds to impact on the lives of the masses.

Originality/value

The statistical significance of accountability found in this study, using partial least square technique of data analysis, will further enhance financial integrity in the country.

Citation

Muraina, S.A. and Dandago, K.I. (2020), "Effects of implementation of International Public Sector Accounting Standards on Nigeria’s financial reporting quality", International Journal of Public Sector Management, Vol. 33 No. 2/3, pp. 323-338. https://doi.org/10.1108/IJPSM-12-2018-0277