Effect of Adoption of International Public Sector Accounting Standards on Quality of Financial Reports in the Public Sector in Nigeria

The adoption of IPSAS aims to enhance the quality and comparability of financial reports in the public sector globally. Despite these objectives, implementing IPSAS in Nigeria has faced significant challenges that may impact the quality of financial reports produced by public sector entities. examine the effect of adopting IPSAS on the quality of financial reports in the Federal Ministry of Finance in Nigeria. Accountability, transparency, relevance, comparability, and full representation are the variables used. The study population comprised accountants, auditors and finance managers in agencies in the Ministry of Finance in Nigeria. Yamane formular was used to arrive at a total number of respondents of 394. The primary data source was used with a structured questionnaire as the instrument of data collection. The data were processed using factor analysis, and the hypotheses were tested using multiple regression. The findings showed that the accountability of IPSAS significantly affects the quality of financial reporting in the Federal Ministry of Finance. The study found that the transparency of IPSAS significantly affects the quality of financial reporting in the Federal Ministry of Finance. The study found that the relevance of IPSAS does not significantly affect the quality of financial reporting in the Federal Ministry of Finance. The study found that the comparability of IPSAS significantly affects the quality of financial reporting in the Federal Ministry of Finance. The study found that the full representation of IPSAS significantly affects the quality of financial reporting in the Federal Ministry of Finance. Based on this, the study recommends that the Federal Ministry of Finance should develop and implement clear accountability frameworks that outline the roles and responsibilities of various personnel in the financial reporting process. This will ensure that everyone understands their accountability in maintaining the quality and integrity of financial reports.