ADOPTION OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS IN FINANCIAL REPORTING BY ACCOUNT OFFICERS IN TERTIARY INSTITUTIONS IN SOUTH-EAST, NIGERIA

Chinyere Genevive Odimmega, C. C. Okolocha

Abstract


This study assessed the adoption of International Public Sector Accounting Standards (IPSASs) in financial reporting by account officers in tertiary institutions in South-East, Nigeria. Two purposes and corresponding research questions guided the study and four null hypotheses were tested at 0.05 level of significance. Related literature pertinent to the study was reviewed. Descriptive survey research design was adopted for the study. The population consisted of 849 account officers working in tertiary institutions. A sample of 272 account officers was used for the study. A structured questionnaire developed by the researchers was used for data collection. Cronbach Alpha Method was used to establish the reliability of the instrument. The reliability index obtained was r = 0.82. Data were analyzed using mean, standard deviation and ANOVA. Mean was used to analyze data related to the research questions and standard deviation was used to explain how the responses of the respondents varied. ANOVA was used to test the hypotheses at 0.05 level of significant. Statistical Package for Social Sciences (SPSS) version 23 was used to analyze the data. The results showed that account officers adopted International Public Sector Accounting Standards (IPSASs) in presenting separately current and non-current assets and liabilities in its financial statement position, presents liability in order of maturity and stating balances carried over from one accounting period to the next accounting period in tertiary institutions in South East. Majority of the account officers did not adopt IPSAS in the presentation of current assets in order of liquidity, disclosure of amount expected to be recovered for each asset and liability, receivables and payables from exchange transactions in reporting assets and liabilities in tertiary institutions in South-East, Nigeria. The results also showed that there was no significant difference in their adoption of IPSASs in reporting assets and liabilities and cash flow management in tertiary institutions in South-East based on type of institution and years of experience. Based on the findings, the researchers recommended, among others, that there should be manpower development by various tertiary institutions to train highly qualified and professional accountants as well as build and develop accounting information system together with information technology. This will help in reporting all statutory income and other internally generated revenue reported for the accounting period.

 

Article visualizations:

Hit counter

DOI

Keywords


international public sector accounting standards, financial reporting, tertiary institution, account officers

Full Text:

PDF

References


Abdullahi, S. R. (2011). Mastering cost and management accounting (1st Edition). Kano-Nigeria: Gidan Dabino Publishers.

Acho, Y. (2014). The challenges of adopting international public sector accounting standard (IPSAS) by Nigeria. Journal of Social Sciences and Public Policy, 6(2), 61-68.

Adams, R. A. (2014). Public sector accounting and finance made simple, revised edition 3, Lagos: Corporate Publishers Venture.

Alba, E. (2014). Beginning governmental accounting. WMCA Workshop.

Asogwa, I. E., Etim, E. O., & Etukafia, N. I. (2017). Cost control measures and funds management in tertiary institutions in Nigeria. Journal of Economics, Management and Trade, 18(2), 1-14.

Ateba, B. B., & Faan, P. (2014). Cash flow management: Assessing its impact on the operational performance of small and medium size enterprises at the Mafikeng Local Municipality in South Africa prior to the global financial crisis. Mediterranean Journal of Social Sciences, 5(27), 226-235.

Avika, M. (2014). The impact of cash management on profitability and sustainability of small retail businesses in the Tongaat area, KwaZulu-Natal. M.Sc thesis submitted to the Cost and Management Accounting in the Department of Management Accounting, Faculty of Accounting and Informatics, Durban University of Technology, Durban, South Africa.

Balogun, E. O. (2016). The impacts of international public sector accounting standards in the Nigerian public sector. International Journal of Advanced Academic Research | Social & Management Sciences, 2(7), 15-33.

Bammeke, A. S. (2012). Public sector accounting and finance for decision making. 2nd Ed. Lagos, SAB Associates Ltd.

Berheci, M. (2010). Financial reports capitalization. Accounting Syntheses: Theory, Analysis, Case Studies CECCAR PH, Bucharest, 380.

Bingilar, P. F., & Oyadonghan, K. J. (2014). Cash flow and corporate performance: A study of selected food and beverages companies. European Journal of Accounting Auditing and Finance Research, 2(7), 77-87.

Brussels, 5.2 (2013). Final commission staff working document. European Commission.

Cenar, J. (2011). Financial reporting in education institutions the implications of the transition to accrual accounting. Annales Universitatis Apulensis Series Oeconomica, 13(1), 22-29.

Dagogo, D. W., & Ohaka, J. (2015). The real impact of financial intervention of enterprise development in Nigeria. Journal of Economics and Sustainable Development, 6(6), 240-246

Deloitte (May 2015). Financial reporting by not-for-profit entities. IPSAS in your pocket, 2015 Edition.

Deloitte (2017). IPSAS in your pocket (April 2017 ed.) Deloitte.

DiMaggio, P. & Powell, W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. Journal of American Sociological Review, 48(1): 146-160.

FAAC (2012). Improving the public sector accounting system in Nigeria. Abuja: FAAC Sub Committee.

FASB (2010), Conceptual framework for financial reporting (Chapter 3: Qualitative characteristics of useful financial information). Statement of Financial Accounting Concepts No. 8, Norwalk, CT.

Federal Republic of Nigeria (FRN, 2013). National policy on education. Lagos: NERDC Press.

Federal Republic of Nigeria. (2015). Accrual accounting manual for all public sector entities in Nigeria (Federal, States and Local Government). Abuja: Federation Account Allocation Committee (FAAC) Sub-Committee on IPSAS implementation.

Financial Reporting Council (2014). Guidance on risk management, internal control and related financial and business reporting. Retrieved from https://www.frc.org.uk/Our-Work/Publications/Corporate-Governance/Guidance-on-Risk-Management,-Internal-Control-and.pdf

Fixsen, D., Blase, K., Metz, A., & VanDyke, M. (2013). Statewide adoption of evidence-based programs. Exceptional Children (Special Issue), 79(2), 213-230.

Heiling, J. (2011). The importance of research in the field of governmental accounting – Views from a Practitioner. Comparative International Governmental Accounting Research Newsletter, 2(2), 89-100.

Houghton, M. (2016). The American heritage dictionary of the English Language, Fifth Edition. Houghton Mifflin Harcourt Publishing Company

IASB, (2010), the conceptual framework for financial reporting. http://eifrs.iasb.org/eifrs/bnstandards/en/framework.pdf.]

Ibanichuka, E. A. L., & Oyadonghan, K. J. (2014). A critique on cash basis of accounting and budget implementation in Nigeria. European Journal of Accounting Auditing and Finance Research, 2(3), 69-83.

Ibrahim, J., Adeyemi, A. O., & Ayeni, A. P. (2016). Critical evaluation of accounting system in tertiary institutions in Osun State, Nigeria. Journal of Economics and Sustainable Development, 7(3), 63-76.

IFAC. (2015). International Public Sector Accounting Standards (IPSAS) Board, Handbook of International Public Sector Accounting Pronouncements. New York: IFAC sub Committee.

Ijeoma. N. B., Oghoghomeh. T. Adoption of international public sector accounting standards in Nigeria: Expectations, benefits and challenges. Journal of Investment and Management, 3(1), 21-29. doi: 10.11648/j.jim.20140301.13

Ile, C. M., & Odimmega, C. G. (2018). Use of forensic accounting techniques in the detection of fraud in tertiary institutions in Anambra State, Nigeria. African Research Review, International Multi-Disciplinary Journal, 12(1), 66-76. http://dx.doi.org/10.4314/afrrev.v12:1.8.

IPSASB (2017). Handbook of International Public Sector Accounting Pronouncements. 2017 Edition, 1.New York: IPSAS Board.

Jensen, M., & Meckling, W. H. (1976). Theory of the firm, managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 305-360.

John, C. (2011). IPSAS adoption in Nigeria step to improved accountability in the Nigeria public sector.

Mike, M. (2014). Implications of IPSAS benefits and opportunities. CPA, 8-9

Modibbo, S. A. (2015). Impact of internal audit unit on the effectiveness of internal control system of tertiary educational institutions in Adamawa State Nigeria. International Journal of Humanities Social Sciences and Education, 2(5), 140-156.

Monari, N. K. (2015), The effect of adoption of international public sector accounting standards on financial reporting in the public sector of Kenya. (Master’s project, university of Nairobi, Kenya).

Nkwagu, L. C., Okoye, G. O., & Nkwagu, C. C. (2016). International public sector accounting standards adoption and financial transparency in the Nigerian South Eastern States public sector: A case of Ebonyi and Enugu States. Journal of Humanities and Social Science, 21(7), 40-51. DOI: 10.9790/0837-2104074051

Noor, M. I., Nour, A., Musa, A., & Zorqan, S. (2012). The role of cash flow in explaining the change in company liquidity. Journal of Advanced Social Research, 2(4), 231-243.

Nwaigburu, K. O., & Mark, B. U. (2014). The use of accounting information in decision making for sustainable development in Nigeria: A study of selected tertiary institutions in Imo State. International Journal of Scientific Research in Education, 7(2), 167-175.

Nworgu, B. G. (2015). Educational research: Basic issues and methodology (3rd edition). Enugu: University Trust Publishers.

Odimmega, C. G. (2015). Extent of use of forensic accounting techniques in the detection and prevention of fraud in tertiary institutions in Anambra State. Unpublished M.Sc Thesis submitted to the Department of Vocational Education, Faculty of Education, Nnamdi Azikiwe University, Awka.

Ofoegbu, G. N. (2014). New public management and accrual accounting basis for transparency and accountability in the Nigerian public sector. Journal of Business and Management, 16(7), 104-113.

Offordile, U. D. (2013). Public sector accounting: The Nigerian experience. International Journal of Finance and Accounting, 2(8), 446-451.

Ohaka, J., Dagogo, D., & Banyie, J. L. (2016). International public sector accounting standards (IPSAS) and local government financial management in Nigeria. Journal of Accounting and Financial Management, 2(3), 1-11.

Opanyi, R. O. (2016). The effect of adoption of international public sector accounting standards on quality of financial reports in public sector in Kenya. European Scientific Journal, 12(28), 161-187. http://dx.doi.org/10.19044/esj.2016.v12n28p161

Osudugba, O. P. (2018). Mandate of the bursary. The Federal University of Technology Akure. Computer Resource Centre.

Otunla, J. O. (2014). The implementation of the international public sector accounting standards in Nigeria: The journey so far. A presentation at the Annual Accountants’ Conference of ICAN.

Rkein, A. (2008). Accrual accounting and public sector reform: Northern territory experience. Ph.D Dissertation submitted to the School of Law and Business, Faculty of Law, Business and Arts, Charles Darwin University.

Rouse, M. (2017). Definition of financial reporting. TechTarget

Steve, C. (2011). IFRS for Dummies. John Wiley and Sons Ltd Publication.

Tatjana, J. (2015). Public sector accounting in Slovenia and Croatia. Public Finances and Accounting HKJU-CCPA, 15(4), 791-814.

Tom, O. O. (2015). The impact of implementation of international public sector accounting standards on financial reporting in public sector in Kenta. A M.Sc. thesis submitted to the School of Business, University of Nairobi.

World Bank. (2017). Brief: Driving development with tertiary education reforms. Washington, D. C: Smarter Education Systems.




DOI: http://dx.doi.org/10.46827/ejes.v0i0.2628

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 Chinyere Genevive Odimmega, C. C. Okolocha

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2015-2018. European Journal of Education Studies (ISSN 2501 - 1111) is a registered trademark of Open Access Publishing Group. All rights reserved.


This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library (Biblioteca Nationala a Romaniei). All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All authors who send their manuscripts to this journal and whose articles are published on this journal retain full copyright of their articles. All the research works published on this journal are meeting the Open Access Publishing requirements and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License (CC BY 4.0).