Recognition and Measurement Principles of Accrual-Based IPSAS and Quality of Corporate Reporting by Government Owned Entities in Nigeria

Oluwamayowa Olalekan Iredele, Yunus Abdulazeez, Olufunmilayo Ajibola

Abstract


Purpose: Quality corporate reporting is a key pillar in achieving transparency, accountability, openness, public trust and better decision making among stakeholders. This study examined the impact that accrual-based International Public Sector Accounting Standards (IPSAS) has on the quality of corporate reporting by government owned entities in Nigeria with specific focus on the effect that recognition and measurement principles have on the quality of reporting.

Methodology: The study utilized primary data which was obtained through the administration of structured questionnaire to two hundred and forty-four (244) employees of Federal Inland Revenue Service personnel, Lagos office station. A multiple linear regression model was employed to analyze the data.

Results: The result of the t-test revealed that the guidance for measurement of assets and liabilities, comparability of financial statements and recognition and measurement components under the accrual-based IPSAS significantly contribute to the quality of corporate reporting in government entities in Nigeria.

Practical Implications: The study identified assets management as a key advantage of the accrual-based IPSAS. Therefore, public entities are expected to maintain assets registry for assets that meet the recognition criteria, as this is instrumental to accountability in asset management, and it is crucial for quality corporate reporting by government entities.

Originality: There is an apparent dearth of empirical studies on the recognition and measurement principles of accrual-based IPSAS, and this is the focus of the current study.

Keywords:  Recognition, Measurement, IPSAS, Corporate Reporting, Government, Entities

DOI: https://doi.org/10.58869/EJABM10(3)/05


Full Text:

PDF

References


Abdul-Rahaman, A., Adzoyi, P., & Azameti, M. (2020). The Impact of Accrual-Based Accounting on Financial Reporting in Ghana. Journal of Accounting and Finance, 20(7), 117-125.

Ajagunna, Okoro, Isaruk, Willaims, Ada, and Wosa, (2023). Impact of Staff Motivation on Job

Performance in Federal Inland Revenue Service, Lagos State, Nigeria. International Journal of Research and Innovation in Social Science (IJRISS), VII (I), 686 – 695.

Alam, M. M., Ali, M. H., & Ahmed, S. (2020). Implementation Challenges of IPSASs in the Public Sector of Developing Countries: Evidence from Bangladesh. International Journal of Financial Research, 11(2), 243-254.

Eke, L. O., &Ozurumba, B. A. (2019). The impact of IPSAS Adoption on the Quality of Financial Reporting in Nigerian public sector entities. Journal of Public Affairs, 19(3), e1918.

Flesher, D. L., & Zimbelman, M. F. (2021). Introduction to the special issue on public sector accounting research. Journal of Public Budgeting, Accounting & Financial Management, 33(1), 1-6.

Gray, R., & Laughlin, R. (2019). Corporate reporting of the public sector: Reflections on 40 years of research. Public Money & Management, 39(3), 147-153.

IFAC. (2015). IPSAS Explained: A Summary of International Public Sector Accounting Standards. International Federation of Accountants.

IPSASB. (2013). International Public Sector Accounting Standards. International Federation of Accountants.

IPSASB. (2019). Handbook of International Public Sector Accounting Pronouncements 2019 Edition. International Federation of Accountants.

Martinov-Bennie, N., & Soh, D. S. B. (2020). The Impact of Accrual-Based IPSAS on the Quality of Government Financial Reporting. Australian Accounting Review, 30(3), 278-294.

Mirza, A. A., Holt, G., & Knapp, G. (2012). International public sector accounting standards (IPSAS): An overview. Research in Accounting Regulation, 24(1), 78-85.

Munasinghe, K., &Tandikatla, V. P. (2019). Adoption of Accrual Accounting and the role of IPSAS: Evidence from public sector entities in Sri Lanka. Journal of Accounting in Emerging Economies, 9(2), 254-276.

Nair, N. K., & Nair, S. S. (2021). Fair value accounting and its impact on financial reporting quality: Evidence from India. International Journal of Accounting, 56(1), 29-44.

https://doi.org/10.1016/j.intacc.2021.01.004

Ogbonna, G. N., & Appah, E. (2019). Factors Affecting Adoption of Accrual-Based IPSAS by Public Sector Organizations in Nigeria. Journal of Accounting and Finance, 19(2), 53-64.

Okoli, I. C., & Ogbuji, C. E. (2021). Challenges of implementing IPSAS in the Nigerian public sector: evidence from public sector accountants. Journal of Financial Reporting and Accounting, 19(1), 91-110.

Olawale, L. A., & Alade, S. O. (2019). Adoption and implementation of accrual-based IPSAS in the Nigerian public sector. Journal of Public Budgeting, Accounting & Financial Management, 31(2), 267-280.

Onwuchekwa, J. C., &Ezejiofor, R. A. (2020). IPSAS adoption and financial accountability in the Nigerian public sector: the moderating role of audit committee independence. International Journal of Public Sector Management, 33(5), 553-567.

Ouda, H. (2019). The impact of implementing accrual accounting in the public sector: Evidence from Egypt. Journal of Accounting in Emerging Economies, 9(3), 429-446.

Oyinloye, O. O., &Oyedokun, G. A. (2018). Adoption of accrual-based IPSAS and financial reporting quality of Nigerian public sector entities. Journal of Accounting in Emerging Economies, 8(4), 568-583.

Polzer, T., Adhikari, P., Nguyen, C. P., &Garseth-Nesbakk, L. (2021). Adoption of the International Public Sector Accounting Standards in emerging economies and low-income countries: A structured literature review. Journal of Accounting in Emerging Economies, 11(2), 328-351. https://doi.org/10.1108/JAEE-02-2020-0034

Tawiah, V. (2023). The Effect of IPSAS Adoption on Governance Quality: Evidence from Developing and Developed Countries. Public Organization Review 23:305–324

Udeh, F., and Sopekan, S., (2015). Adoption of IPSAS and the Quality of Public Sector Financial Reporting in Nigeria. Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) 6(20),1-15

Uwuigbe, U., Mgbame, C. O., Ademola, A. A., & Adegbite, T. (2021). The impact of IPSAS adoption on the quality of financial reporting in Nigerian federal government entities. Journal of Accounting in Emerging Economies. 39(4), 245-252.




Copyright (c) 2024 European Journal of Applied Business and Management

 

European Journal of Applied Business and Management

ISSN: 2183-5594

DOI: https://doi.org/10.58869/EJABM

Indexing:

EBSCO | CROSSREF | GOOGLE SCHOLAR | LATINDEX | DRJI | ICI JOURNALS MASTER | REDIB | MIAR