THE EFFECT OF ADOPTION OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS ON QUALITY OF FINANCIAL REPORTS IN PUBLIC SECTOR IN BORNO STATE

Abstract

The study investigates the effect of adopting International Public Sector Accounting Standards (IPSAS) on the quality of financial reports in the public sector of Borno State. Secondary source of data was used to collect date from 17 Ministries in the state. The Theory of isomorphism was used as the lens of the study, it adopted a descriptive survey design, collected data underwent a completeness check, followed by summarization, coding, and tabulation using the statistical package SPSS version 20. Descriptive statistics were applied to describe study variables, while paired-sample t-tests were conducted to identify any significant differences between old accounting standards and assess the quality scores. Finding reveals that IPSAS-based reports in Borno State scored higher in relevance and comparability compared to old standards-based reports, but had lower scores in faithful representation and understandability. The study recommends a cautious in transition to accrual basis IPSAS standards, granting more autonomy for financial management reforms, and utilizing past financial data for a reality check in budgeting.