The Influence of IPSAS 3 Adoption on Accounting Information Disclosure
Israel S AKINADEWO, Muyiwa Emmanuel DAGUNDURO, Bukola Ibilola FAGBOMEDO, Taiwo Omolade OWOEYE
Abstract
The need to enhance financial reporting in the public sector has led many countries to adopt international standards such as IPSAS to promote transparency and global comparability. This conceptual paper evaluated how the adoption of IPSAS 3 influences accounting information disclosure in public sector entities. Employing a qualitative research approach, the study conducts a theoretical analysis based on secondary data drawn from scholarly literature, accounting standards, and government documents. Rather than collecting new empirical data, the study synthesizes existing research to develop insights into IPSAS 3's impact. The methodology involved a systematic literature review and thematic analysis, focusing on publications from 2015 to 2024. Key databases such as Scopus, Google Scholar, JSTOR, and ScienceDirect were searched using terms like “IPSAS 3” and “public sector financial reporting.” Through critical examination, the paper identified recurring themes and conceptual linkages between IPSAS 3 components: disclosures of accounting policies, changes in estimates, error corrections and improved accounting information disclosure. The analysis revealed that structured implementation of IPSAS 3 enhances the transparency, consistency, and reliability of financial statements. Findings are consistent with prior research conducted in countries such as Libya, Nigeria, Indonesia, Morocco, and Greece, confirming that IPSAS adoption supports better governance and accountability in the public sector. In conclusion, IPSAS 3 significantly strengthens financial disclosure practices, and it is recommended that public sector financial officers be regularly trained to ensure accurate and effective application of the standard. This contributes to improved financial oversight and alignment with international reporting expectations.
Keywords
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