EFFECTS OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS ADOPTION ON PUBLIC SECTOR FINANCIAL MANAGEMENT IN NIGERIA

EFFECTS OF
INTERNATIONAL PUBLIC
SECTOR ACCOUNTING
STANDARDS ADOPTION ON PUBLIC
SECTOR FINANCIAL MANAGEMENT
IN NIGERIA
Collins O. Nwade 1 , Ogechi E. Alpheaus 2 ,
Ndukwe O. Dibia 3 and John U.
Ihendinihu 41&3 Department ofBook of Abstract
Accountancy, Faculty of Business
Administration
Abia State University, Uturu, Nigeria.
nwadecollins1@gmail.com
nodibia2006@yahoo.com &
Department of Accounting,
2&4
College of Management Sciences,
Michael Okpara University of Agriculture,
Umudike
Alpheausogechieberechi@gmail.com
&ihendinihu.john@gmail.com
ABSTRACT
This study assesses the effects of International
Public Sector Accounting Standards (IPSAS)
adoption on public sector financial
management in Nigeria. The objective is to
evaluate the effectiveness of IPSAS in
enhancing debt management, fiscal discipline
and curbing corruption in the Nigerian public
sector. Ex post facto research design was
adopted. Time series data on three identified
proxies for evaluating public sector
accountability were collected from the Central
Bank of Nigeria Statistical Bulletin and official
reports of Transparency International to cover
two periods – 2010 to 2013 for the Pre-IPSAS
adoption and 2014 to 2019 for the Post-IPSAS
adoption eras. Independent sample t-test was
used to compare the pre and post IPSAS
adoption figures on public debt, corruption
index and fiscal discipline in the sector. Results
indicate that the mean public debt and
corruption index figures were higher, while
fiscal discipline deteriorated more, during the
post adoption period than was observed
before the adoption. Empirical tests reveal
that public debt and fiscal discipline figures
between the two periods differed significantly,
but differences in corruption indices were not
statistically significant. The paper therefore
concludes that the adoption of IPSAS in
Nigeria has not sufficiently addressed the
Accounting and Finance Research Association
problems of fiscal indiscipline, increasing
public debt profile and the scourge of
corruption in the economy, and recommends
strategies for leveraging on global best
practices in dealing with challenges in public
sector financial management so as to generate
the needed transformation for sustainable
economic growth in Nigeria. Keywords:
International Public Sector Accounting
Standards, accountability, corruption, public
debt management, fiscal discipline

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