Over the years, countries of the world have defined and set
the standards of financial reporting in their individual territories. However,
globalization has brought about ever increasing collaboration, international
trade and commerce among the countries of the world; hence, there is grave need
for increased uniformity in the standards guiding financial statements so that
such statement would remain comprehensible and convene the same information to
users across the world. The need for the development of unified accounting
standards has been the primary driver of international public sector Accounting
Standards for public sector financial reporting. While the commercial entities
across the world are moving toward international financial Reporting standards
(IFRS), governments are harmonizing with International Public sector Accounting
Standards (IPSAS). The international Public sector Accounting Standards govern
the accounting by public sector entities, with the exception of Government
Business Enterprises.
Looking at the previous
years, cash basis of accounting is observed to be the commonly used basis in
the public sector which has some limitations and setbacks that affects
financial transactions such as poor budget implementation, mismanagement of
public fund etc. This can be traced to the fact that while using the cash basis
of accounting, there is no attempt to match an expense with the revenue it
generates. This means that income statement and balance sheet are not good
pictures of recent business conditions and an expense written against specific
revenue may not have been incurred for generating the revenue.the objectives if this study are to examines the effect of
adopting International Public Sector Accounting Standards (IPSAS) in Government
agencies and ministries and to identify the challenges of
migrating to Accrual Basis IPSAS in public sector. This study would increase level of confidence and improved
decision-making and in government financial reporting by emphasizing on
disclosures and presentations of information relevant to the key stakeholders
in Government financial reporting.
This study focused on the empirical evaluation of IPSAS on
public sector financial management in Nigeria with particular reference toFederal University Oye Ekiti .The study made use of only Accountants and In this
public institutions.
