The Adoption of Accrual Basis of IPSAS and its Impact on Financial Reporting in Nigerian Public Sector

Abstract  The researcher intends to find out the cost and benefit of adopting and implementing IPSAS to financial reporting in the Nigeria public sector. The cost of implementing the standard is actually a big task as it would mostly involve the cost of training personnel, writing of new accounting manuals, installation of adequate information and communication technology software for the programme both at the Federal, State and Local government, among others. On the economic side, Ngama (2012) noted that the adoption of IPSAS would provide the basis for the establishment of a harmonized budgetary system for the three tiers of government. The researcher used descriptive analysis and made use of Chi-square test and Krustal Wallis test to test the proposed hypothesis. The findings of this study found out that the implementation of IPSAS in the Nigerian public sector would significantly improve transparency and accountability. The researcher recommended that the preparation of the country’s financial statement using IPSAS which is an international standard would definitely encourage investors into the country. Furthermore, it would also expose the in-house corrupt practice of some of the public officers thereby deterring them from such act.   TABLE OF CONTENT Title Page Declaration Certification Approval Page Dedication Acknowledgement Abstract Table of Contents
Chapter One  Introduction 1.1 Background of the study------1 1.2 Statement of the Problem------3 1.3 Research Questions-------5 1.4 Objective of the Study------5 1.5 Research Hypothesis-------6 1.6 Significance of the Study------6 1.7 Scope of the Study-------7 1.8 Scope of the Study-------7 1.9 Definition of Terms-------8 Chapter Two Literature Review 2.1 Introduction-------10 2.2 Conceptual Framework of the study-----10 2.2.1 Introduction to Public Financial Reporting---12 2.2.2 Overview of IPSAS Adoption in Nigeria----14 2.2.3 Criteria for IPSAS First-time Adopter-----16 2.2.4 Conditions for a successful migration to accrual basis of accounting-17 2.2.5 Transitional IPSAS Financial Statements----18 2.2.6 Challenges associated with Adopting IPSAS----19 2.2.7 Comparison of Current Cash Basis Accounting System and the Proposed IPSAS Based Cash and Accrual Basis------21 2.2.8 Impact of IPSAS Adoption------23 2.2.9 Costs and Benefits of IPSAS Adoption in Nigeria---24 2.2.10 Major issues of the Nigerian Public Sector Reform --28 2.2.11 Indices for IPSAS Implementation in Nigeria ----30 2.3Empirical Review of the Study-----32 2.4Theoretical Framework of the Study----33
Chapter Three Research Methodology 3.1 Introduction -------45 3.2 Research Design-------45 3.3 Population of the Study------45 3.4 Selection of Sample/Sampling Techniques----46 3.5 Method of Data Collection------46 3.5 Method of Data Analysis -------47
Chapter Four Data Presentation and Analysis 4.1 Introduction--------49 4.2 Data Presentation and Analysis-----49 4.3 Test of Hypothesis-------57 4.5 Interpretation of Findings------62 Chapter Five Summary, Conclusion and Recommendations  5.1 Summary--------64 5.2 Conclusion--------64 5.3 Recommendations-------65 5.4 Contribution to knowledge------66 Bibliography--------67 Appendix--------72-75