INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD ADOPTION (IPSAS) AND FINANCIAL REPORTING QUALITY IN OGUN STATE PUBLIC SECTOR

This research investigates the effect of the adoption of International Public Sector Accounting Standards (IPSAS) on the quality of financial reporting of Ogun State public sector organizations. With the objectives of assessing the impact of IPSAS on accountability, transparency, and faithful representation, the study made use of a survey design involving senior officials from 20 ministries and departments; a total of 200 questionnaires were distributed, and 180 were culled for analysis. Descriptive statistics and inferential techniques (linear regression/ANOVA) were used to test three hypotheses relating IPSAS adoption to accountability, transparency, and faithful representation. The analysis of empirical data reveals that the level of IPSAS implementation is strongly and positively correlated with the three measures of reporting quality considered, and this relationship is statistically significant; about 96.4% of the variation in accountability is explained by IPSAS implementation (R² = 0.964), while transparency and faithful representation are explained by 91.3% (R² = 0.913) and 92.8% (R² = 0.928), respectively: all tests are statistically significant at p < 0.01. It is evident that in the Nigerian environment, the adoption of IPSAS improves timely record-keeping, the quality of disclosure, audit results, and improves the relevance and reliability of financial information for fiscal oversight. From the findings, therefore, it was recommended that training and capacity building for accounting staff be sustained, investments be made in integrated financial management systems, and stronger internal audit and oversight mechanisms be put in place; also recommended are phased implementation and solid data governance structure to sustain the gains.