IPSAS Adoption as a Panacea to the Financial Management of Public Sector in Nigeria by Atere, A & Kuola, A.J

Abstract

This study examined the effect International Public Sector Accounting Standards (IPSAS) adoption has on public sector financial management in Ogun State, Nigeria. The study adopted a descriptive survey research design because it helps in obtaining similar information from various groups of persons through the use of an administered questionnaire. The population covered all the staffs (do not pluralize staff- staff is staff) of Ogun State Accountant General’s Office; out of which 50 staff was selected as the sample size and this was achieved through random sampling technique. A close ended questionnaire was used to elicit the needed information from the respondents and the necessary validity and reliability of the instrument were done accordingly to authenticate the items on the questionnaire. Data generated from the respondents was analyzed through simple regression, and mean and standard deviation. The findings of the study revealed that the independent variable explained about 11.2% of the systematic variation of the dependent variable. The overall fitness of the model as shown in the F statistics of 18.189 with a probability of 0.04 was statistically significant as it was lesser than the standard critical p-value of 0.05. Hence, the study concluded that IPSAS significantly influences public sector financial management in Nigeria and that the challenges of Nigerian public sector are costs associated with tracking and identifying government tangible assets. Hence, it was recommended that government at all levels; should as a matter of necessity embark on continuous training and retraining of accounting personnel who are charged with the responsibilities of preparing the accounts in order to maintain and sustain enhanced credibility of financial reporting.

Keywords

IPSAS adoption, Financial Reporting, Financial Management, Public Sector, Financial Accountability

Publication Information

Publication Type

Conference Paper

Publication Date

2024-07-10

Language

English

ISBN

2645-2391

Publisher

AAPoly School of Management and Business Studies

References

Alleyne, P. (2014), Developments in Public Sector Accounting Practices in Barbados, University of the West Indies. Retrieved from , accessed 23 October 2017.

Ama, G.A.N (2013). Public Sector Accounting and Finance: Today’s Theory and Practice, Divine Favour Publications, Enugu, Nigeria.

Dirisu, Y. (2017). $25b NNPC scam: Nigerians can now see the hypocrisy in Buhari’s anti- corruption fight – PDP, vanguard newspaper, accessed on 17th November, 2017.Retrievedfrom: https://www.vanguardngr.com/2017/10/ 25b-nnpc-scam-nigerians- can- now-see-hypocrisy-called-anti-corruption-fight-pdp/

Donaldson, L. (1990), the ethereal hand: Organizational economics and management theory. Academy of Management Review, 15, 369-381.

Donaldson, L., & Davis, J. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49-64.

Efobi, U. R. & Bwala A. (2013). Voluntary information disclosure practice of listed companies in Nigeria. ICAN Journal of Accounting, 2(1), 13-30.

Erin, O., Okoye, L.U., Modebe, N. J. & Ogundele, O. (2016), International Public Sector Accounting Standards (IPSAS) Adoption and Quality of Financial Reporting in the Nigerian Public Sector, ESUT Journal of Accountancy, 7(2), 22-30

FAAC (2020). FAAC Sub-committee on international public Sector Accounting Standards (IPSAS) Implementation in Nigeria: Report on the monitoring and evaluation of the level of implementation of IPSAS Accrual basis of Accounting by Public Sector Entities (PSEs) in Nigeria. Federal Ministry of Finance, Budget and National Planning, 34p.

Fama, E. and Jensen, M. (1983) Separation of Ownership and Control. Journal of Law and Economics, 26, 301–325.

Frank, I. (2015). IPSAS: January 2016 for implementation, The Nation Newspaper, accessed on 17th November, 2017, Retrieved from: http://thenationonlineng.net/ipsas- january-2016- for-implementation/

Ibhahulu, O. M. (2012). The impact of public sector accounting in Nigeria: A case study of Esan South/East local government area, Edo State. Department of Accountancy, Faculty of Social Sciences, Caritas University, Amorji-nike, Enugu.

ICAN (2014). The implementation of the international public sector accounting, Presentation, accessed on 17th November, 2017, retrieved from: https://www.icanig.org/ ican/documents/ICAN2014PresentationbyAGF.pdf

IFAC (2017), Public Sector Financial Management, accessed on 17th November, 2017, retrieved from: https://www.ifac.org/mosaic/public-sector-financial- management?resources&overview

Ijeoma.N.B and Oghoghomed (2014). Adoption of International public sector accounting standards in Nigeria: Expectations benefit and challenges, Journal of investment and management, Science publishing group.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3: 305-360.

Mhaka, C. (2014). IPSAS, A Guaranteed Way of Quality Government Financial Reporting? A Comparative Analysis of the Existing Cash Accounting and IPSAS Based Accounting Reporting, International Journal of Financial Economics, 3(3), 134-141

Mitnick, B. (1975). The Theory of Agency: The Policing ‘Paradox’ and Regulatory Behavior. Public Choice 24: 27–43.

Nkwagu, L.C., Uguru, L.C. and Nkwede, F.E. (2016). Implications of International Public Sector Accounting Standards on Financial Accountability in the Nigerian Public Sector: A Study of South Eastern States, Journal of Business and Management, 18(7), 105-118, ISSN: 2319-7668.

Ofoegbu, G.N. (2014). New Public Management and Account Basis for Transparency and Accountability in the Nigerian Public Sector, Journal of Business and Management, 16(7), 104-113

Olaoye, D. (2010). Elements of Public Sector Accounting, Aseda Publishing, Ibadan Nigeria.
Onuba, I. (2018, April 2018). FG to address IPSAS adoption challenges. Punch Newspaper. Retrieved from https://punchng.com/fg-to-address-ipsas-adoption-challenges/32p, accessed 15, 2019

Oshinsami, K. (1992). Government Accounting & Financial Control. Spectrum Books; Ibadan, Nigeria.
Premium Times (2016). Nigeria Audits 33 Agencies, uncovers N450 billion unremitted revenue. Retrieved from https://www.premiumtimesng.com/ news/headlines/216854-nigeria-audits-33-agencies-uncovers-n450- billionunremitted- revenue.html, accessed 23 October 2017.

Roje, G., Vasicek, D. and Vasicek, V. (2010). Accounting Regulation and IPSAS Implementation: Efforts of Transition Countries toward IPSAS Compliance, Journal of Modern Accounting and Auditing, 6(12), 1-16
Ross, S. (1973). The Economic Theory of Agency: The Principal's Problem, American Economic Review, 63, 134–139.

Samson, A.U. (2016). SGF, Babachir Lawal involved in IDPs Contracts Scam in North East, Daily Post Nigeria accessed on 17th November, 2017, retrieved from: http://dailypost.ng/2016/12/14/sgf-babachir-lawal-involved-idps-contracts-scam north-east/

Shehu, A. A. and Adamu, D. A. (2014). IPSAS and Nigerian Public Sector: The Challenges of First Time Adopters, International Journal of Social Sciences and Humanities Innovations, 2(1), 151-160.

Ugwumadu, J. (2015). Argentina default ‘highlights need for IPSAS. Public Finance International, 98p. Retrieved from http://www.publicfinanceinternational.org/news/2014/08/Argentina-default- highlights-need-ipsas, accessed 23 October 2017.

Rights and Licence

Copyright: AAPoly School of Management and Business Studies, 2024