Effect of International Public Sector Accounting Standards Application on Financial Reporting Quality of Government Establishments in Akwa Ibom State, Nigeria

This study examined the effect of International Public Sector Accounting Standards (IPSAS) application on financial reporting quality in the Office of the Accountant General, Akwa Ibom State, Nigeria. Against the backdrop of global moves towards improved public financial management and transparency, IPSAS adoption was aimed to enhance the credibility, comparability, and reliability of financial reports. However, despite Nigeria’s formal adoption of IPSAS in 2010, implementation has been slow and inconsistent, particularly at the state level, leading to concerns about its actual effect on financial reporting quality. The research employed a survey design, collecting primary data via structured questionnaires from 133 accounting personnel. Data were analyzed using descriptive statistics and regression analysis, with hypotheses tested at a 5% significance level. The findings revealed that IPSAS application has a significant positive effect on faithful representation (β = 0.615), reliability (β = 0.680), timeliness (β = 0.705), verifiability (β = 0.660), and comparability (β = 0.645) of financial reports. The study concluded that IPSAS adoption considerably enhances financial reporting quality and supports accountability and transparency in the public sector. Recommendations included mandatory training programs, technological upgrades, stronger regulatory enforcement, and change management initiatives. Further research is suggested to explore IPSAS implementation in other Nigerian states and across different tiers of government. This study contributed to the existing body of knowledge by providing empirical evidence on the disaggregated effects of IPSAS on key qualitative attributes of financial reporting within a sub-national context in a developing economy.