INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS) AND FINANCIAL REPORTING QUALITY

The persistent challenges of poor financial accountability, unreliable reporting, and weak fiscal management in Nigeria’s public sector have raised concerns about the effectiveness of its financial reporting systems. This study examined the impact of International Public Sector Accounting Standards (IPSAS) on financial reporting quality in the Nigerian public sector, focusing on three key dimensions: transparency, reliability, and financial effectiveness. The motivation for the study stems from widespread non-compliance with financial standards, poor public fund management, and increasing demands for fiscal transparency and accountability in public institutions. The study adopted a survey research design, utilizing a structured, closed-ended questionnaire to GATHER data from 180 respondents drawn from the Federal Inland Revenue Service (FIRS) and the Ondo State Internal Revenue Service (ODIRS). The sampling method used was simple random sampling, while the sample size was determined using Taro Yamane’s formula. The instrument was tested for validity and reliability. Data were analyzed using descriptive statistics and multiple regression analysis to test the hypothesized relationships between IPSAS adoption and financial reporting quality indicators. Findings from the analysis reveal a significant positive relationship between IPSAS and financial reporting quality. Specifically, IPSAS adoption improved transparency (r = 0.646; R² = 0.64; F = 86.43, p < 0.05), enhanced the reliability of financial reports (r = 0.756; R² = 0.75; F = 52.123, p < 0.05), and significantly influenced financial effectiveness (r = 0.842; R² = 0.85; F = 78.63, p < 0.05). These results indicate that IPSAS plays a critical role in promoting more accurate, reliable, and efficient financial practices in the Nigerian public sector. In conclusion, the study affirms that IPSAS adoption has had a transformative impact on public sector financial reporting in Nigeria. However, for these gains to be sustained, the government must invest in capacity building, upgrade financial reporting infrastructure, and enforce strict compliance through effective monitoring and regulatory oversight. The study recommends continuous training for public finance officers, implementation of robust ICT systems, and institutional reforms to strengthen IPSAS compliance and accountability in public financial management.