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International Public Sector Accounting Standard (IPSAS) in Nigeria as a Correlate to Transparency and Accountability

Received: 3 September 2018     Accepted: 19 October 2018     Published: 12 November 2018
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Abstract

International Public Sector Accounting Standard (IPSAS) is the version of International Financial Reporting Standardfor meetingcomplex challenges of modern financial reporting. (This is in terms of coherency, consistency, uniformity, internationalization, and clarity in the preparation and reporting standard for public sector financial information. This study is empirical and seeks to determine the correlation between IPSAS implementation and transparency and Accountability in the Nigeria Public sector. A positive correlation will be in consonance with the Accounting theory of fair reporting of the socio-economic position and performance of practicing organizations. Conclusion can be that transparency and Accountability are being embraced. Consequently, such result justifies the Direct Benefit Theory for instance that direct capital inflow into Nigeria from other IPSAS practicing countries is being facilitated. A hypothesis on the relationship between IPSAS implementation and Transparency and Accountability was formulated. The Central Bank of Nigeria and the Auditor General of the Federation’s offices from which 100, and 50 staff randomly selected provided useful information. Primary and secondary data utilized were utilized for this study. Simple percentages were used for ratings in the analysis of data. The hypothesis was tested through the Product – Moment Correlation. Out of 150 respondents, 102 (or 68%) posited that there is a high correlation between IPSAS implementation and transparency and accountability in IPSAS practicing organizations. Correlation coefficient, r of 0.20 (or 20%) obtained implies a Linear relationship. The null hypothesis of no correlation between IPSAS implementation and transparency and accountability was rejected, while the alternative hypothesis was accepted. Conclusion was that 20% coefficient shows a weak correlation implying the need for complementary independent variables (like increased regulatory framework) as transparency and accountability re-enforcements. It is recommended that more regulatory framework be promoted.

Published in Journal of Finance and Accounting (Volume 6, Issue 5)
DOI 10.11648/j.jfa.20180605.12
Page(s) 110-116
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Accountability, Clarity, Coherency, Consistency, Correlation, Internationalization, Standard, Transparency

References
[1] Achua, J. K. (2009). Reinventing Governmental Accounting for Accountability Assurance in Nigeria. Research Journal of Accountancy.
[2] Adegbite, E. O (2010). Accounting, Accountability and National Development. National Accountant 43 (1).
[3] Adianric, Y. Kober R. and Ng. J. (2010). Decision usefulness of Cash and Accrual Information’ Public Sector Managers’ Perspective Australian Accounting Review 2. 144-153.
[4] Aminu, B. Z. (2018). The International Public Sector Accounting Standard (IPSAS) and the Level of Accountability and Transparency in the Nigeria Public Sector; An Unpublished M.Sc. Thesis, National Open University of Nigeria.
[5] Anwaruddin, C. (2013). Harmonization of Financial Reporting and Audit Practices: Bangladesh Perspective; Dhaka Institute of Chartered Accountants of Bangladesh (ICAB) members’ Conference.
[6] Ballogun, E. O, (2010). The Impact of International Public Sector Accounting Standard in the Nigerian Public Sector. International Journal of Advanced Academic Research. 2 (7).
[7] Bello, A. (2013) ‘IPSAS: Issues, Challenges and Implementation: Un Published Paper Presentation at the Mandatory Certified Personal Development Organized by the Institute of Certified Public Sector Accountants of Nigeria.
[8] Carnegie, G. D. and West, B. P. (2205). ‘Making Accountants Accountable in the Public Sector,” Critical Perspectives on Accounting.
[9] Caureuning, H. V (2010) @ International Financial Reporting Standard (IFRS): A Practical Guide ‘6th’ ed. The World Bank. Washington D. C.
[10] Dankwanbo, I. H. (2010). Transition to International Public Sector Accounting Standard (IPSAS) and Their Impact on Transparency: A Case Study of Nigeria.
[11] IPSAS Sub-Committee. (2015). Accounting Manual / National Chart of Accounts.
[12] Federal Ministry of Finance, Office of Accountant General of the Federation, Abuja, (2013). Training Manual for Workshop for Officers in Public Financial Management for the Three Tiers of Government Federation Account Allocation Sub-Committee on Road Map for Adopting IPSAS in Nigeria.
[13] Hamisu, K. S. (2012). Factors Affecting the Implementation of IPSAS in Kenya Unpublished M.Sc Dissertation to the College of Humanities and Social Sciences, University of Nairobi, Kenya.
[14] Ijeoma, N. B. and Oghoghomeh, T. (2014). Adoption of International Public Sector Accounting Standards in Nigeria: Expectations, Benefits and Challenges. Journal of Investments and Managements 3(1).
[15] Izedonmi, F. and Ibadin, P. O. (2013) International Public Sector Accounting Frame Work, Regulatory Agencies and Standard Setting Procedures. A Critique” European Journal of Business and Management.
[16] Kiugu, F. (2010). A Survey of Perception on theAdoptionof International Public Sector Accounting Standard by Local Authorities in Kenya. Unpublished MBA Thesis University of Nairobi.
[17] Lapsley, G. Musari R. and Paulsson, G. (2009). “On the Adoption of Accrual Accounting in the Public Sector; a Self- Evident and Problematic Reform’ European Accounting Review. 18/4.
[18] Malahleha, R. (2012). Implications of Adopting and Implementing IPSAS. KPMG Services (PTY) Ltd. A South African Company and Member of the KPMG Network of Independent Member Firms: International Cooperative.
[19] Obazee, J. (2008). ‘Public Sector Accounting and Reporting Compliance with Standards’ The Nigerian Accountants. 41 (2).
[20] Treasury. (2013). Adoption, Implementation and Application of International Public Sector Accounting (IPSAS) in Nigeria. 13th May, TRY/A4 and B4/2013 DAGF/CAD/026/V.1/190.
[21] Treasury. (2015). Commencement of Implementation of International Public Sector Accounting Standard (IPSAS) Accrual Basis by all Public Sector Entities in Nigeria, 1st January, 2016. TRY/48 and BB/20150AGF/CAD/026/VOL11/240.
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  • APA Style

    Innocent Felix Idoko, Susan Peter Teru, Mustapha TafidaAminu. (2018). International Public Sector Accounting Standard (IPSAS) in Nigeria as a Correlate to Transparency and Accountability. Journal of Finance and Accounting, 6(5), 110-116. https://doi.org/10.11648/j.jfa.20180605.12

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    ACS Style

    Innocent Felix Idoko; Susan Peter Teru; Mustapha TafidaAminu. International Public Sector Accounting Standard (IPSAS) in Nigeria as a Correlate to Transparency and Accountability. J. Finance Account. 2018, 6(5), 110-116. doi: 10.11648/j.jfa.20180605.12

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    AMA Style

    Innocent Felix Idoko, Susan Peter Teru, Mustapha TafidaAminu. International Public Sector Accounting Standard (IPSAS) in Nigeria as a Correlate to Transparency and Accountability. J Finance Account. 2018;6(5):110-116. doi: 10.11648/j.jfa.20180605.12

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  • @article{10.11648/j.jfa.20180605.12,
      author = {Innocent Felix Idoko and Susan Peter Teru and Mustapha TafidaAminu},
      title = {International Public Sector Accounting Standard (IPSAS) in Nigeria as a Correlate to Transparency and Accountability},
      journal = {Journal of Finance and Accounting},
      volume = {6},
      number = {5},
      pages = {110-116},
      doi = {10.11648/j.jfa.20180605.12},
      url = {https://doi.org/10.11648/j.jfa.20180605.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180605.12},
      abstract = {International Public Sector Accounting Standard (IPSAS) is the version of International Financial Reporting Standardfor meetingcomplex challenges of modern financial reporting. (This is in terms of coherency, consistency, uniformity, internationalization, and clarity in the preparation and reporting standard for public sector financial information. This study is empirical and seeks to determine the correlation between IPSAS implementation and transparency and Accountability in the Nigeria Public sector. A positive correlation will be in consonance with the Accounting theory of fair reporting of the socio-economic position and performance of practicing organizations. Conclusion can be that transparency and Accountability are being embraced. Consequently, such result justifies the Direct Benefit Theory for instance that direct capital inflow into Nigeria from other IPSAS practicing countries is being facilitated. A hypothesis on the relationship between IPSAS implementation and Transparency and Accountability was formulated. The Central Bank of Nigeria and the Auditor General of the Federation’s offices from which 100, and 50 staff randomly selected provided useful information. Primary and secondary data utilized were utilized for this study. Simple percentages were used for ratings in the analysis of data. The hypothesis was tested through the Product – Moment Correlation. Out of 150 respondents, 102 (or 68%) posited that there is a high correlation between IPSAS implementation and transparency and accountability in IPSAS practicing organizations. Correlation coefficient, r of 0.20 (or 20%) obtained implies a Linear relationship. The null hypothesis of no correlation between IPSAS implementation and transparency and accountability was rejected, while the alternative hypothesis was accepted. Conclusion was that 20% coefficient shows a weak correlation implying the need for complementary independent variables (like increased regulatory framework) as transparency and accountability re-enforcements. It is recommended that more regulatory framework be promoted.},
     year = {2018}
    }
    

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    AU  - Innocent Felix Idoko
    AU  - Susan Peter Teru
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    AB  - International Public Sector Accounting Standard (IPSAS) is the version of International Financial Reporting Standardfor meetingcomplex challenges of modern financial reporting. (This is in terms of coherency, consistency, uniformity, internationalization, and clarity in the preparation and reporting standard for public sector financial information. This study is empirical and seeks to determine the correlation between IPSAS implementation and transparency and Accountability in the Nigeria Public sector. A positive correlation will be in consonance with the Accounting theory of fair reporting of the socio-economic position and performance of practicing organizations. Conclusion can be that transparency and Accountability are being embraced. Consequently, such result justifies the Direct Benefit Theory for instance that direct capital inflow into Nigeria from other IPSAS practicing countries is being facilitated. A hypothesis on the relationship between IPSAS implementation and Transparency and Accountability was formulated. The Central Bank of Nigeria and the Auditor General of the Federation’s offices from which 100, and 50 staff randomly selected provided useful information. Primary and secondary data utilized were utilized for this study. Simple percentages were used for ratings in the analysis of data. The hypothesis was tested through the Product – Moment Correlation. Out of 150 respondents, 102 (or 68%) posited that there is a high correlation between IPSAS implementation and transparency and accountability in IPSAS practicing organizations. Correlation coefficient, r of 0.20 (or 20%) obtained implies a Linear relationship. The null hypothesis of no correlation between IPSAS implementation and transparency and accountability was rejected, while the alternative hypothesis was accepted. Conclusion was that 20% coefficient shows a weak correlation implying the need for complementary independent variables (like increased regulatory framework) as transparency and accountability re-enforcements. It is recommended that more regulatory framework be promoted.
    VL  - 6
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Author Information
  • Department of Accountancy, Taraba State University, Jalingo, Nigeria

  • Department of Accountancy, Taraba State University, Jalingo, Nigeria

  • Department of Accountancy, Taraba State University, Jalingo, Nigeria

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