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Impact of IPSAS Compliance on Faithful Representation of Financial Reporting by State Governments in Northern Nigeria

Kefas James TAGWI, Grace YUNUSA, Toma AYUBA

Abstract

This study examines the impact of International Public Sector Accounting Standards (IPSAS) compliance on faithful representation of financial reporting by state governments in northern Nigeria. The population of the study comprises of 19 state governments in northern Nigeria. The study employed the non-survey research design. Secondary data were used, sourced from the office of the state Accountant General of each of the sampled states and the state government websites for the period 2015 to 2022.The independent variable was IPSAS compliance measured as compliance with the reporting requirements of the 8 selected IPSAS, while the dependent variable is the financial reporting quality (FRQ) proxy by Faithful Representation. The study data was analysed using descriptive statistics, compliance index, correlation statistics and multiple regression analysis. The study result revealed that IPSAS compliance has significant impact on faithful representation of financial reporting of northern state government in Nigeria. The study therefore recommends that Financial Reporting Council of Nigeria (FRCN) and office of the Accountant General of the Federation (AGF) should ensure greater compliance with IPSAS reporting guidelines through increased monitoring so as to enhance financial reporting quality for the benefit of users.

Keywords

IPSAS. Faithful RepresentationFinancial Reporting

References

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