INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS) ADOPTION AND FINANCIAL REPORTING QUALITY OF NIGERIA PUBLIC SECTOR ENTITIES

Abstract

The study assessed the extent to which IPSAS engenders financial reporting quality in Nigeria. The
study's population consisted of 426 employees of Federal Government agencies in FCT, Abuja, and a
sample size of 206 employees. A total of 206 copies of the questionnaire were distributed but 200
validly returned copies of the questionnaire were used. The data for this study were analyzed using
regression model. The result shows that IPSAS has a considerable positive effect on the transparency
of the Nigerian public sector's financial reports. Furthermore, the adoption of IPSAS has a negative
minor influence on the reliability of financial reports in the Nigerian public sector. Finally, it is
discovered that IPSAS implementation has a considerable beneficial influence on the value relevance
of financial reports. It is recommended that Nigeria's federal government should continue with the
IPSAS adoption. The increased transparency in public financial reports would make stakeholders
trust the government's financial disclosures. This will go a long way in helping government
institutions earn the confidence of stakeholders who intend to invest and partner with the government
towards achieving the medium-term economic growth plans of the government.

Keywords: IPSAS, transparency, reliability, accountability, value relevance