Global Jou nal o Economic and
Finance Resea ch
Vol. 02(10): 1043-1055, Oc obe 2025
Home Page: h ps://gje .com/
e-ISSN: 3050-5348
p-ISSN: 3050-533X
DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1043
Implemen a ion o In e na ional Public Sec o Accoun ing S anda ds on he
Quali y o Financial Repo ing
Samuel Agyei-Baah1, Issah O o i2, John Odu o3, E elyn Appiah-Kubi4, Do o hy Odame Asa e5
1A ican Uni e si y o Communica ion and Business.
2Acc a Technical Uni e si y. ORCID:0009-0000-9766-5233
3S John’s G amme Senio High School.
4Ch is Apos olic Uni e si y College.
5Rosebank In e na ional Uni e si y College.
1. BACKGROUND OF THE STUDY
The implemen a ion o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) has ga ne ed signi ican a en ion in ecen yea s
due o i s po en ial o enhance he quali y o inancial epo ing wi hin public sec o o ganiza ions. As go e nmen s wo ldwide s i e
o g ea e anspa ency, accoun abili y, and e icien use o public esou ces, he adop ion o IPSAS has eme ged as a pi o al
s ep in achie ing hese objec i es (Gu h ie e al., 2020). IPSAS p o ides a comp ehensi e se o accoun ing s anda ds speci ically
ailo ed o he public sec o , aligning i wi h in e na ionally accep ed inancial epo ing p inciples. This s udy examines he
implemen a ion o IPSAS wi hin selec ed minis ies and i s impac on he quali y o inancial epo ing, ocusing on Ghana, a coun y
ha has emba ked on e o ms o s eng hen public inancial managemen (Nyah- Okpu & Emenyonu, 2021). The public sec o in
many coun ies has aced c i icisms o ine iciencies, lack o anspa ency, and poo inancial managemen p ac ices, which can
KEYWORDS: IPSAS Adop ion,
T anspa ency o Financial Repo ing,
Accoun abili y o Financial Repo ing
Co esponding Au ho :
Issah O o i
Publica ion Da e: 09 Oc obe -2025
DOI: 10.55677/GJEFR/07-2025-Vol02E10
License:
This is an open access a icle unde he CC
BY 4.0 license:
h ps://c ea i ecommons.o g/licenses/by/4.0/
ABSTRACT
The implemen a ion o In e na ional Public Sec o Accoun ing S anda ds
(IPSAS) has ga ne ed signi ican a en ion in ecen yea s due o i s po en ial o
enhance he quali y o inancial epo ing wi hin public sec o o ganiza ions. As
go e nmen s wo ldwide s i e o g ea e anspa ency, accoun abili y, and
e icien use o public esou ces, he adop ion o IPSAS has eme ged as a pi o al
s ep in achie ing hese objec i es. Despi e ongoing e o s o acili a e IPSAS
adop ion in Ghana, limi ed esea ch exis s on how he implemen a ion o hese
s anda ds has di ec ly in luenced he quali y o inancial epo ing wi hin
speci ic minis ies. This s udy aims o ill his gap by in es iga ing he impac o
IPSAS implemen a ion on he quali y o inancial epo ing in selec ed minis ies
in Ghana. This s udy adop s a quan i a i e esea ch app oach, as i is bes sui ed
o e alua ing he causal ela ionships be ween IPSAS adop ion and
imp o emen s in inancial epo ing quali y. This s udy ollows a posi i is
esea ch philosophy, which is based on he p inciple ha eali y is objec i e and
can be obse ed and measu ed h ough empi ical means. In he con ex o his
s udy, pu posi e sampling was u ilized o selec a sample size o 366. The s udy
examined he e ec o In e na ional Public Sec o Accoun ing S anda ds (IPSAS)
on anspa ency and accoun abili y in inancial epo ing. The indings indica e
a signi ican and posi i e ela ionship be ween IPSAS adop ion and bo h
anspa ency and accoun abili y in inancial epo ing. Based on he indings, he
s udy ecommends ha go e nmen s should ensu e comple e compliance wi h
IPSAS o maximize i s bene i s on inancial anspa ency and accoun abili y,
public sec o inancial o ice s should unde go con inuous aining on IPSAS
implemen a ion and epo ing s anda ds and inally, go e nmen agencies should
enhance audi and en o cemen mechanisms o moni o IPSAS compliance.
Issah O o i (2025), Global Jou nal o Economic and Finance Resea ch 02(10): 1043-1055
DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1044
hinde economic de elopmen (Mahmoud & Khaled, 2022). In esponse, he adop ion o IPSAS seeks o add ess hese challenges
by p omo ing uni o mi y and compa abili y in inancial epo ing ac oss minis ies, depa men s, and agencies. In de eloping
coun ies, he quali y o inancial epo ing in he public sec o has adi ionally lagged behind he p i a e sec o , p ima ily due o
ou da ed accoun ing amewo ks ha a e no sui ed o he public sec o 's unique cha ac e is ics. IPSAS adop ion, which ad oca es
o acc ual-based accoun ing, in oduces imp o emen s in inancial decision-making and esou ce alloca ion by p o iding mo e
accu a e and comp ehensi e inancial in o ma ion (Chan, 2020).
The quali y o inancial epo ing in he public sec o has long been a ma e o conce n, pa icula ly in de eloping coun ies whe e
ou da ed and ine icien accoun ing p ac ices ha e esul ed in poo iscal managemen and a lack o anspa ency. The In e na ional
Public Sec o Accoun ing S anda ds (IPSAS) we e in oduced o add ess hese issues by p o iding a se o in e na ionally accep ed
s anda ds ailo ed speci ically o public sec o inancial epo ing. Despi e he ecognized bene i s o IPSAS, i s implemen a ion has
aced nume ous challenges, especially in Sub-Saha an A ica. In Ghana, o ins ance, he ansi ion om cash-based o acc ual-
based accoun ing h ough IPSAS has been ma ked by slow adop ion, capaci y issues, and insu icien in as uc u e wi hin a ious
go e nmen minis ies (Ali e al., 2022). These challenges aise ques ions abou whe he he adop ion o IPSAS has had he desi ed
impac on imp o ing he quali y o inancial epo ing in he public sec o .
The signi icance o inancial epo ing quali y canno be o e s a ed, as i plays a c ucial ole in enhancing anspa ency,
accoun abili y, and decision-making wi hin public sec o o ganiza ions. Wi h he in oduc ion o IPSAS, i is expec ed ha minis ies
will be be e equipped o p o ide comp ehensi e, accu a e, and imely inancial in o ma ion. Howe e , he cu en s a e o inancial
epo ing in Ghana's public sec o sugges s ha he e may be gaps in ealizing hese bene i s. S udies ha e shown ha many
minis ies con inue o s uggle wi h issues such as inadequa e disclosu e o asse s, un imely inancial epo ing, and inconsis encies
in inancial s a emen p epa a ion (Agyemang & F impong, 2023). As a esul , s akeholde s, including go e nmen agencies,
in e na ional dono s, and he gene al public, may be dep i ed o eliable in o ma ion necessa y o e ec i e go e nance and esou ce
alloca ion.
Despi e ongoing e o s o acili a e IPSAS adop ion in Ghana, limi ed esea ch exis s on how he implemen a ion o hese s anda ds
has di ec ly in luenced he quali y o inancial epo ing wi hin speci ic minis ies. Unde s anding he ex en o which IPSAS has
imp o ed o ailed o imp o e inancial epo ing quali y is essen ial o guiding u u e public inancial managemen e o ms.
Mo eo e , in es iga ing he challenges and oppo uni ies associa ed wi h IPSAS adop ion can o e aluable insigh s o policymake s
and p ac i ione s, pa icula ly in de eloping coun ies whe e public inancial managemen sys ems a e s ill e ol ing (Mokh a &
Nabhan, 2020). This s udy aims o ill his gap by in es iga ing he e ec o IPSAS implemen a ion on he quali y o inancial
epo ing in selec ed minis ies in Ghana.
2. LITERATURE REVIEW
2.1 The Concep o In e na ional Public Sec o Accoun ing S anda ds
Accoun ing p ac ices in bo h go e nmen and co po a e sec o s aim o s anda dize and minimize dispa i ies in inancial epo ing
ac oss na ions. The push o enhanced in e na ional accoun ing ha moniza ion is d i en by he need o inancial anspa ency,
which suppo s sound decision- making, in e gene a ional equi y, and imp o ed e iciency in public spending (Vasicek & Roje,
2019). Consequen ly, ha monizing accoun ing s anda ds enhances he compa abili y o inancial in o ma ion ac oss coun ies
(Shehu & Adamu, 2019; Tanjeh, 2016). In e na ional Public Sec o Accoun ing S anda ds (IPSASs) a e cu en ly employed globally
o enhance public sec o accoun ing (Vasicek & Roje, 2019). The In e na ional Public Sec o Accoun ing S anda ds Boa d (IPSASB)
p omo es imp o ed public inancial managemen and unde s anding o IPSAS by aising awa eness o i s bene i s, imp o ing public
sec o inancial epo ing quali y and anspa ency, and de eloping new publica ions o he sec o (Mu iso e al., 2017).
Fo go e nmen o ganiza ions, IPSAS se es as a s anda d o inancial epo ing. These s anda ds, de eloped by IPSASB, a e he
public sec o 's equi alen o In e na ional Financial Repo ing S anda ds (IFRS), which a e speci ic o p i a e sec o en i ies
(Vasicek & Roje, 2019). IPSAS add esses inancial epo ing issues ha IFRS does no co e . In Janua y 2016, IPSASB issued 39
IPSAS, o which 38 signi ican ly emphasized he acc ual me hod o inancial epo ing, as he cash basis was deemed insu icien
o mee ing he needs o inancial epo use s. The IPSASB (2015) s a ed ha hese s anda ds apply o public sec o en i ies and
aid in p epa ing inancial s a emen s. The aim o IPSAS is o assis public o icials in making in o med decisions o ensu e
esponsible and anspa en go e nance (IPSASB, 2015). IPSAS comp ises a se o la gely acc ual- based accoun ing s anda ds ha
p o ide a common amewo k o p epa ing annual inancial s a emen s in he public sec o . These s anda ds a e de eloped, e ined,
and issued by he IPSAS G oup, a global s anda d-se ing body ha includes ep esen a i es om go e nmen minis ies, audi
cou s, public p ac i ione s, and academics (Mhaka, 2014). Addi ionally, public pa icipa ion in he s anda d de elopmen p ocess is
encou aged h ough eedback on exposu e d a s. Al hough IPSAS is issued by IPSASB, an independen a m o he In e na ional
Fede a ion o Accoun an s (IFAC), go e nmen s and in e na ional o ganiza ions a e no obliga ed o adop hem (Mu iso e al.,
2017).
2.1.2 In e na ional Public Sec o Accoun ing S anda ds (IPSAS)
Be o e he in oduc ion o IPSAS, he e was no s anda dized amewo k speci ically designed o guide inancial epo ing on public
Issah O o i (2025), Global Jou nal o Economic and Finance Resea ch 02(10): 1043-1055
DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1045
unds in educa ional ins i u ions o s akeholde s (Izueke e al., 2020). Cu en accoun ing p ac ices in bo h p i a e and public
ins i u ions aim o ha monize in e na ional ansac ions and educe disc epancies in epo ing ac oss coun ies. This global
ha moniza ion o accoun ing is d i en by he need o inancial anspa ency, which enhances decision-making and e iciency in
managing public expendi u es (Schmid hube e al., 2022). Consequen ly, he alignmen o accoun ing s anda ds acili a es g ea e
compa abili y o inancial in o ma ion ac oss public sec o ins i u ions (Ma ei e al., 2020). Today, his ha moniza ion is achie ed
h ough he implemen a ion o IPSAS (Salia & A uilik, 2018). IPSAS a e p edominan ly acc ual-based s anda ds ha p o ide a
uni o m app oach o p epa ing annual inancial s a emen s in he public sec o (Schmid hube e al., 2022). These s anda ds we e
de eloped o add ess gaps no co e ed by he exis ing In e na ional Financial Repo ing S anda ds (IFRS) (Schmid hube e al.,
2022; Ademola e al., 2017).
2.1.3 IPSAS Implemen a ion and Financial Managemen Quali y
Managemen imp o emen e e s o he changes ins i u ions make o enhance hei abili y o mee objec i es. Examples o such
imp o emen s include e ec i ely communica ing inancial in o ma ion o s akeholde s, in luencing s akeholde engagemen ,
ensu ing anspa ency in inancial ma e s, implemen ing in e nal con ols o mi iga e isks o enhance consis ency, and imp o ing
decision-making quali y. Se e al s udies ha e explo ed he connec ion be ween he adop ion o IPSAS and managemen p ac ices
o de e mine i IPSAS implemen a ion can enhance ins i u ional managemen (Tawiah, 2022; Tawiah, 2021; K ishnan, 2021;
Schmid hube e al., 2020; A uilik & Salia, 2019; Olaoye & Talabi, 2018; Opanyi, 2016).
Fo ins ance, Tawiah (2022) examined how IPSAS implemen a ion a ec s go e nance quali y using da a om bo h de eloped and
de eloping coun ies. He ound ha IPSAS has a di ec and signi ican impac on go e nance quali y, p omo ing accoun abili y and
anspa ency in ins i u ional go e nance, al hough his posi i e e ec was p ima ily obse ed in de eloping coun ies. In a ela ed
s udy, Schmid hube e al. (2020) e iewed exis ing li e a u e on IPSAS and a gued ha i s implemen a ion is likely o enhance
anspa ency and compa abili y in public inancial ac i i ies, he eby s eng hening ins i u ional go e nance. Opanyi (2016)
analyzed he e ec s o IPSAS on he use ulness o inancial epo decisions. U ilizing a desc ip i e su ey design ocused on 19
minis ies in Kenya, Opanyi concluded ha high-quali y inancial in o ma ion plays a c ucial ole in holding managemen
accoun able o s akeholde s and in ul illing inancial managemen esponsibili ies. This inding indica es ha IPSAS con ibu es
signi ican ly o imp o emen s in public sec o managemen , aligning wi h global ends ha demand inancial accoun abili y and
anspa ency wi hin public ins i u ions.
A uilik and Salia (2019) s udied he impac o IPSAS implemen a ion on anspa ency and accoun abili y in public und
managemen . They disco e ed ha inadequa e disclosu e o public expendi u es hinde s o ganiza ions' abili y o main ain
anspa ency and accoun abili y. Thus, he implemen a ion o IPSAS has eme ged as a p e alen mechanism o enhancing inancial
managemen in public sec o ins i u ions. Acco ding o K ishnan (2021), IPSAS enhances public managemen decision-making by
acili a ing be e planning and esou ce managemen . This unde sco es ha acc ual-accoun ing in o ma ion e ec i ely mee s he
in o ma ional needs o businesses and in es o s (Gomes e al., 2015). The global inancial c isis has highligh ed he impo ance o
ha monizing public sec o epo ing o p o ide imely and eliable in o ma ion o ale p ac i ione s o po en ial inancial issues
(Cohen & Ka a zimas, 2015).
P e ious s udies ha e examined he adop ion o IPSAS in he public sec o and iden i ied oppo uni ies o ea nings managemen
ha i p esen s (Tawiah, 2021). This sugges s ha IPSAS implemen a ion may allow o e enue manipula ion wi hin ins i u ions.
Olaoye and Talabi (2018) explo ed he impac o IPSAS on inancial epo ing in Nige ia's public sec o , inding no signi ican
ela ionship be ween IPSAS applica ion and imp o ed managemen , indica ing ha IPSAS has no enhanced managemen in
Nige ia. I is essen ial o no e ha he impac o IPSAS on managemen may no be s aigh o wa d, as i could ei he imp o e o
diminish managemen quali y. This s udy, he e o e, posi s ha a di ec ela ionship exis s be ween IPSAS implemen a ion and
managemen quali y in colleges o educa ion in Ghana.
2.1.4 IPSAS Implemen a ion and Re enue Managemen
The In e na ional Public Sec o Accoun ing S anda ds Boa d (IPSASB) has ecen ly eleased i s Wo k Plan o 2019-2023, hemed
“Deli e ing Global S anda ds.” The IPSASB aims o enhance Public Financial Managemen (PFM) globally by p omo ing he use
o acc ual-based IPSAS. Re enue managemen is a s a egic app oach ha helps op imize an o ganiza ion’s in en o ies and maximize
income. Howe e , only a limi ed numbe o s udies ha e explo ed he link be ween IPSAS implemen a ion and e enue managemen
(A uilik & Salia, 2019; Odimmega & Okolocha, 2019; Olaoye & Talabi, 2018; Ahamd, 2013; T ang, 2012). Fo ins ance, A uilik and
Salia (2019) s udied he impac o IPSAS applica ion on anspa ency and accoun abili y in he managemen o public unds in
Libe ia. They dis ibu ed ques ionnai es o audi o s and accoun an s wi hin go e nmen depa men s and public sec o o ganiza ions,
inding ha IPSAS implemen a ion enhances anspa ency and accoun abili y in he use o go e nmen esou ces. Odimmega and
Okolocha (2019) assessed IPSAS implemen a ion in inancial epo ing among e ia y ins i u ions in Nige ia, using a sample o 272
accoun o ice s and a s uc u ed ques ionnai e o da a collec ion. Thei s udy e ealed no signi ican di e ences in how IPSAS
was implemen ed o epo ing asse s and liabili ies wi hin hese ins i u ions.
Olaoye and Olaniyan (2018) examined he e ec s o IPSAS implemen a ion on inancial managemen in Nige ia’s public sec o
Issah O o i (2025), Global Jou nal o Economic and Finance Resea ch 02(10): 1043-1055
DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1046
h ough a desc ip i e su ey design and closed-ended ques ionnai es. Thei analysis, u ilizing simple eg ession and mean anking,
indica ed a signi ican in luence o IPSAS implemen a ion on inancial managemen p ac ices in he Nige ian public sec o . Ahamd
(2013) a gued ha IPSAS implemen a ion os e s in e na ional in es men , he eby acili a ing o eign di ec in es men in lows.
Simila ly, T ang (2012) highligh ed a posi i e ela ionship be ween IPSAS and he compa abili y o inancial epo ing
in e na ionally, sugges ing ha IPSAS encou ages o eign in es men in a coun y. Con e sely, some esea ch has no iden i ied
posi i e impac s o IPSAS on e enue managemen . Fo example, Olaoye and Talabi (2018) in es iga ed IPSAS use in Nige ia's public
sec o and i s economic implica ions, employing a desc ip i e esea ch su ey. They concluded he e was no co ela ion be ween
IPSAS applica ion and inancial epo ing o economic bene i s, indica ing no e idence ha IPSAS has enhanced e enue gene a ion
o a ac ed o eign di ec in es men in Nige ia. Agasis i e al. (2015) s udied he e ec s o ull acc ual accoun ing in I alian public
uni e si ies and ound ha IPSAS does no o e speci ic p ocedu es o assis uni e si ies in add essing ecogni ion and alua ion
issues ypical in he public sec o . Simila ly, Schmid hube e al. (2020) ag eed ha IPSAS implemen a ion does no lead o
imp o emen s in e enue gene a ion. Despi e he limi ed esea ch on he ela ionship be ween IPSAS implemen a ion and e enue
managemen , no s udies ha e been conduc ed in Ghana, pa icula ly wi hin he con ex o colleges o educa ion. The indings om
he exis ing s udies p esen inconsis en esul s.
2.2 Agency Theo y
Agency Theo y, o iginally de eloped by Jensen and Meckling (1976), is c ucial o unde s anding he ole o IPSAS in imp o ing
inancial epo ing quali y. This heo y sugges s ha public sec o manage s (agen s) a e accoun able o he go e nmen and he
public (p incipals). As p incipals canno di ec ly moni o he agen s’ ac ions, he e is an inhe en isk o in o ma ion asymme y and
oppo unis ic beha io . IPSAS se es as a mechanism o educe in o ma ion asymme y by s anda dizing inancial epo ing, making
i easie o p incipals o e alua e he pe o mance o agen s. I ensu es ha inancial epo s a e anspa en , compa able, and
eliable, allowing s akeholde s o moni o whe he public sec o esou ces a e being used e icien ly and e ec i ely (Pina e al.,
2019). By os e ing s anda dized epo ing p ac ices, IPSAS minimizes he agency p oblem, hus imp o ing he quali y o inancial
in o ma ion p o ided by public sec o en i ies. Adop ing IPSAS also con ibu es o inancial accoun abili y, a c i ical elemen o he
agency ela ionship. Acco ding o Ekea e e al. (2019), he implemen a ion o IPSAS s eng hens he accoun abili y o public
manage s by ensu ing ha hey adhe e o globally ecognized accoun ing s anda ds, he eby p o iding p incipals wi h mo e eliable
in o ma ion on how public esou ces a e managed. This is pa icula ly ele an in con ex s whe e go e nmen s ace sc u iny o e
he managemen o public unds, as IPSAS-complian epo s can imp o e us be ween agen s and p incipals.
2.2.1 Ins i u ional Theo y
Ins i u ional Theo y p o ides a b oade lens o unde s anding IPSAS implemen a ion by ocusing on how public sec o en i ies
con o m o es ablished no ms and egula ions o gain legi imacy. Acco ding o his heo y, o ganiza ions, including public sec o
en i ies, adop p ac ices and p ocedu es ha align wi h ex e nal expec a ions o main ain hei legi imacy wi hin socie y (Meye &
Rowan, 1977). The adop ion o IPSAS can be seen as an ins i u ional esponse o he global call o imp o ed anspa ency,
accoun abili y, and go e nance in he public sec o . Go e nmen s ha implemen IPSAS demons a e hei commi men o aligning
wi h in e na ional bes p ac ices in inancial epo ing, hus enhancing hei legi imacy in he eyes o domes ic and in e na ional
s akeholde s (Ch is iaens e al., 2017). Ins i u ional p essu es, bo h coe ci e and no ma i e, play a signi ican ole in IPSAS adop ion.
Coe ci e p essu es a ise om he demands o ex e nal bodies, such as in e na ional inancial ins i u ions and dono agencies, which
o en equi e coun ies o adop IPSAS as a condi ion o unding o inancial assis ance. No ma i e p essu es s em om he
p o essionaliza ion o accoun ing s anda ds and p ac ices, as public sec o o ganiza ions seek o con o m o he no ms se by
accoun ing bodies such as he In e na ional Public Sec o Accoun ing S anda ds Boa d (IPSASB) (Ademola e al., 2020). These
ins i u ional p essu es d i e go e nmen s o adop IPSAS, he eby imp o ing he quali y o inancial epo ing h ough s anda dized,
compa able, and anspa en accoun ing p ac ices.
Figu e 1. Concep ual F amewo k
Issah O o i (2025), Global Jou nal o Economic and Finance Resea ch 02(10): 1043-1055
DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1047
2.3 Rela ionship be ween IPSAS Adop ion and T anspa ency o Financial Repo ing
The adop ion o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) has a signi ican and posi i e in luence on he
anspa ency and accoun abili y o inancial epo ing in public sec o o ganiza ions. IPSAS es ablishes a globally ecognized
amewo k ha enhances he quali y o inancial in o ma ion by p omo ing s anda dized accoun ing p ac ices ac oss di e en
ju isdic ions. This ensu es ha public inancial epo ing is mo e anspa en , compa able, and accoun able o s akeholde s, he eby
imp o ing go e nance and inancial o e sigh in he public sec o . T anspa ency in inancial epo ing e e s o he cla i y, openness,
and accessibili y o inancial in o ma ion o s akeholde s. IPSAS enhances anspa ency by ensu ing ha public sec o en i ies p o ide
de ailed and accu a e inancial epo s ha p esen a ue and ai iew o hei inancial posi ion and pe o mance. Acco ding o
Pina e al. (2019), IPSAS-complian epo s a e based on acc ual accoun ing, which o e s a mo e comp ehensi e ep esen a ion o
inancial ac i i ies by eco ding ansac ions when hey occu , a he han when cash changes hands. This app oach p o ides
s akeholde s wi h a clea e pic u e o he public en i y's inancial obliga ions, asse s, and liabili ies, he eby imp o ing he o e all
anspa ency o inancial epo ing.
Addi ionally, IPSAS p omo es uni o mi y in inancial epo ing ac oss di e en public sec o en i ies, making i easie o
s akeholde s o compa e inancial pe o mance ac oss egions o sec o s. The s anda dized o ma manda ed by IPSAS ensu es ha
inancial epo s a e p epa ed using consis en accoun ing p inciples, educing he isk o misin e p e a ion and enabling mo e
in o med decision-making. As Opanyi (2016) highligh s, anspa ency in inancial epo ing is a c ucial ac o in building us
be ween he go e nmen and i s s akeholde s, as i allows o g ea e sc u iny o how public unds a e being u ilized. IPSAS adop ion,
by s anda dizing inancial epo ing p ac ices, plays a i al ole in os e ing his us . Based on he a gumen s p esen ed, he s udy
p oposed ha :
H1a: The adop ion o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) has a posi i e in luence on he anspa ency o
inancial epo ing in public sec o o ganiza ions.
2.3.1 Rela ionship be ween IPSAS Adop ion and Accoun abili y o Financial Repo ing
Accoun abili y in inancial epo ing in ol es he obliga ion o public sec o en i ies o p o ide accu a e in o ma ion on hei
inancial ope a ions and o jus i y hei use o public esou ces o s akeholde s. IPSAS adop ion s eng hens accoun abili y by
ensu ing ha public sec o en i ies a e equi ed o p epa e inancial epo s ha comply wi h in e na ional s anda ds, he eby educing
he isk o mismanagemen and co up ion. Acco ding o Ekea e e al. (2019), IPSAS p o ides a obus amewo k o moni o ing
and e alua ing he pe o mance o public sec o en i ies, ensu ing ha hey a e held accoun able o hei inancial decisions. By
adhe ing o IPSAS, public sec o en i ies a e obliged o disclose all ma e ial inancial in o ma ion, including liabili ies, asse s, and
con ingen obliga ions. This le el o de ail ensu es ha s akeholde s, including ci izens, audi o s, and in e na ional o ganiza ions,
ha e access o su icien in o ma ion o e alua e whe he public esou ces ha e been managed esponsibly. The implemen a ion o
IPSAS also acili a es ex e nal audi s by p o iding a s anda dized epo ing amewo k ha audi o s can use o assess he accu acy and
eliabili y o inancial s a emen s (Ch is iaens e al., 2017). This s eng hens accoun abili y by ensu ing ha public sec o en i ies a e
held esponsible o hei inancial ac ions and decisions.
Fu he mo e, he enhanced accoun abili y esul ing om IPSAS adop ion leads o imp o ed go e nance and iscal discipline in he
public sec o . When public sec o en i ies a e equi ed o adhe e o in e na ional s anda ds o inancial epo ing, hey a e less likely
o engage in p ac ices ha de ia e om es ablished no ms, as hey a e subjec o g ea e sc u iny om bo h in e nal and ex e nal
s akeholde s. This con ibu es o mo e e ec i e managemen o public unds and educes he likelihood o inancial mismanagemen
o was e. Based on he a gumen s p esen ed, he s udy p oposed ha :
H1b: The adop ion o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) has a posi i e in luence on he accoun abili y o
inancial epo ing in public sec o o ganiza ions.,
3. METHODOLOGY
In he con ex o his s udy, he explana o y esea ch design was employed o analyze how he implemen a ion o In e na ional
Public Sec o Accoun ing S anda ds (IPSAS) a ec s he quali y o inancial epo ing in selec ed minis ies. This app oach is essen ial
o unde s anding he impac o IPSAS adop ion on inancial anspa ency, compa abili y, and accoun abili y in he public sec o
(Ch is iaens e al., 2021). The explana o y esea ch design is app op ia e o his s udy because i allows o an in-dep h examina ion
o he causal link be ween IPSAS implemen a ion and inancial epo ing quali y. The s udy ocuses on selec ed minis ies ha ha e
adop ed IPSAS in hei inancial epo ing p ocesses. The a ge popula ion includes inancial o ice s, audi o s, accoun an s, and
policy make s wi hin hese minis ies. A s a i ied andom sampling echnique will be used o ensu e ep esen a ion om di e en
le els o inancial managemen , enhancing he gene alizabili y o indings (C eswell & C eswell, 2018). Pu posi e sampling is
pa icula ly app op ia e o his s udy as IPSAS implemen a ion is a specialized a ea equi ing insigh s om p o essionals wi h
expe ise in accoun ing, audi ing, and inancial egula ion in he public sec o (Cohen, Manes-Rossi, & Cape chione, 2021). By
ocusing on key s akeholde s such as go e nmen accoun an s, audi o s, policymake s, and inancial manage s, his s udy ensu es
ha i s indings e lec he p ac ical eali ies o IPSAS adop ion. The s udy employed pu posi e sampling echnique o ob ain a
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DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1048
sample size o 366 esponden s. By selec ing a di e se and ep esen a i e sample, his s udy aims o p o ide eliable indings ha
con ibu e o academic knowledge and p ac ical policy ecommenda ions. The s udy employed quan i a i e analy ical echniques.
In e en ial s a is ics, such as eg ession analysis, we e applied o assess he s eng h and signi icance o he ela ionship be ween
IPSAS implemen a ion and inancial epo ing quali y (Hai e al., 2020).
4. ANALYSIS AND RESULTS
4.1 Reliabili y and Validi y
Reliabili y and alidi y a e c ucial in ensu ing he accu acy and c edibili y o esea ch indings. Reliabili y e e s o he consis ency
and s abili y o a measu emen ins umen o e ime, meaning ha epea ed applica ion o he same ins umen should yield simila
esul s (Saunde s, Lewis, & Tho nhill, 2019). To assess eliabili y, he s udy employed C onbach’s alpha, a widely used measu e o
in e nal consis ency, whe e a alue abo e 0.7 is gene ally conside ed accep able (Hai e al., 2020). On he o he hand, alidi y
de e mines whe he an ins umen measu es wha i is in ended o measu e (C eswell & C eswell, 2023). This s udy ensu ed alidi y
h ough con en alidi y, cons uc alidi y, and c i e ion alidi y. Con en alidi y was es ablished h ough expe e iews, ensu ing
ha su ey i ems adequa ely co e ed all aspec s o he s udy a iables (Seka an & Bougie, 2020). Cons uc alidi y was es ed using
ac o analysis, con i ming ha he i ems accu a ely ep esen ed he unde lying cons uc s (Field, 2021). Fu he mo e, c i e ion
alidi y was checked by compa ing he s udy’s measu es wi h es ablished scales used in p e ious esea ch. Ensu ing bo h eliabili y
and alidi y enhances he obus ness o he s udy indings, making hem mo e gene alizable and applicable in p ac ice.
Table 1: KMO and Ba le 's Tes
Kaise -Meye -Olkin Measu e o Sampling Adequacy.
.797
Ba le 's Tes o
Sphe ici y
App ox. Chi-Squa e
1207.956
d
66
Sig.
.000
The Kaise -Meye -Olkin (KMO) es assesses he sui abili y o da a o ac o analysis by measu ing he p opo ion o a iance in
he da ase ha could be a ibu ed o unde lying ac o s. The ob ained KMO alue o 0.797 indica es a mode a e o high le el o
sampling adequacy, as alues abo e 0.70 a e conside ed accep able o ac o analysis (Kaise , 1974). This esul sugges s ha he
da ase is well-sui ed o explo a o y ac o analysis (EFA) and ha he sample size is adequa e o de ec ing meaning ul ac o
s uc u es. Ba le ’s Tes o Sphe ici y examines whe he he co ela ion ma ix o he da ase is signi ican ly di e en om an iden i y
ma ix, which would indica e ha he a iables a e in e ela ed and sui able o ac o analysis. The es esul s show an app oxima e
Chi-Squa e alue o 1207.956 wi h 66 deg ees o eedom (d = 66) and a signi icance le el (Sig.) o 0.000. Since he p- alue is less
han 0.05, he null hypo hesis ha he co ela ion ma ix is an iden i y ma ix is ejec ed. This con i ms ha he e a e su icien
co ela ions among he a iables o jus i y p oceeding wi h ac o analysis (Hai e al., 2020). The esul s o he KMO and Ba le ’s
Tes indica e ha he da a is app op ia e o ac o analysis. The KMO alue (0.797) is abo e he ecommended h eshold o 0.70,
and Ba le ’s Tes is s a is ically signi ican (p < 0.05), con i ming ha ac o analysis can be meaning ully applied o iden i y
unde lying pa e ns in he da ase .
Table 2: Reliabili y and alidi y Resul s
Cons uc s
C onbach’s
Alpha
Con e gen Validi y
(AVE)
Disc iminan Validi y
(DV)
Composi e
Reliabili y (CR)
IPSAS Adop ion
.761
0.5805
0.762
0.8461
T anspa ency in Financial Repo ing
.871
0.7001
0.8367
0.9024
Accoun abili y in Financial Repo ing
.899
0.741
0.861
0.919
Reliabili y and alidi y a e c ucial in assessing he consis ency and accu acy o measu emen cons uc s. Table 2 p esen s he esul s
o C onbach’s Alpha, Con e gen Validi y (AVE), Disc iminan Validi y (DV), and Composi e Reliabili y (CR) o h ee
cons uc s: IPSAS Adop ion, T anspa ency in Financial Repo ing, and Accoun abili y in Financial Repo ing. C onbach’s Alpha is
a measu e o in e nal consis ency, wi h alues abo e 0.70 conside ed accep able (Nunnally & Be ns ein, 1994). The eliabili y and
alidi y esul s indica e ha he measu emen model is bo h eliable and alid. All cons uc s exhibi s ong in e nal consis ency
(C onbach’s Alpha > 0.70), good con e gen alidi y (AVE > 0.50), clea disc iminan alidi y (DV > in e -cons uc co ela ions),
and high composi e eliabili y (CR > 0.70). This ensu es ha he cons uc s e ec i ely cap u e he in ended dimensions o IPSAS
adop ion, anspa ency, and accoun abili y in inancial epo ing.
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DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1049
Table 3: To al Va iance Explained
Ex ac ion Sums o Squa ed Loadings
Ro a ion Sums o Squa ed Loadings
To al
% o
Va iance
Cumula i e
%
To al
% o
Va iance
Cumula i e
%
4.021
33.506
33.506
3.071
25.589
25.589
2.465
20.545
54.050
2.933
24.441
50.030
1.884
15.703
69.753
2.367
19.724
69.753
The To al Va iance Explained esul s con i m ha h ee ac o s su icien ly explain he majo i y (69.753%) o he da ase 's a iance.
The o a ion edis ibu ed he a iance ac oss he ac o s, imp o ing in e p e abili y while main aining he o e all explained a iance.
This indica es a s ong and alid ac o s uc u e, making he ex ac ed ac o s sui able o u he analysis.
Table 4: Ro a ed Componen Ma ixa
Componen
1
2
3
IPSA1
-.063
.066
.799
IPSA2
.000
.007
.741
IPSA3
-.118
.092
.832
IPSA4
.011
-.108
.665
TFR1
.196
.698
.072
TFR2
.117
.895
.075
TFR3
.156
.900
.012
TFR4
.117
.838
-.125
AFR1
.848
.118
-.070
AFR2
.883
.089
.008
AFR3
.863
.183
-.011
AFR4
.848
.233
-.117
The Ro a ed Componen Ma ix p esen s he ac o loadings a e applying o a ion ( ypically Va imax) o imp o e in e p e abili y.
Fac o loadings indica e he s eng h o he ela ionship be ween each i em and he ex ac ed componen s. Highe absolu e alues
( ypically ≥0.50) sugges a s ong associa ion wi h he espec i e componen (Hai e al., 2020). The Ro a ed Componen Ma ix
con i ms ha he measu emen i ems load on o hei expec ed cons uc s wi h high ac o loadings (≥0.60) and minimal c oss-
loadings. This alida es he ac o s uc u e and suppo s he s udy’s heo e ical cons uc s o IPSAS Adop ion, T anspa ency in
Financial Repo ing, and Accoun abili y in Financial Repo ing.
Table 5: Fo nell-La cke C i e ion
IPSA
TFR
AFR
IPSA
Pea son Co ela ion
0.762
.451**
.603**
Sig. (2- ailed)
.000
.000
N
366
366
366
TFR
Pea son Co ela ion
.451**
0.8367
.504**
Sig. (2- ailed)
.000
.000
N
366
366
366
AFR
Pea son Co ela ion
.603**
.504**
0.861
Sig. (2- ailed)
.000
.000
N
366
366
366
**. Co ela ion is signi ican a he 0.01 le el (2- ailed).
No e: IPSA= In e na ional Public Sec o Accoun ing S anda ds; TFR = T anspa ency in Financial Repo ing; AFR =Accoun abili y
in Financial Repo ing
The Fo nell-La cke C i e ion is a widely used measu e o assess disc iminan alidi y, ensu ing ha each cons uc is dis inc om
he o he s. Acco ding o Fo nell and La cke (1981), disc iminan alidi y is es ablished i he squa e oo o he A e age Va iance
Ex ac ed (AVE) o each cons uc is g ea e han i s co ela ions wi h o he cons uc s. IPSAS Adop ion (IPSA) and T anspa ency
in Financial Repo ing (TFR) = 0.451 (p < 0.01). IPSAS Adop ion (IPSA) and Accoun abili y in Financial Repo ing (AFR) = 0.603
Issah O o i (2025), Global Jou nal o Economic and Finance Resea ch 02(10): 1043-1055
DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1050
(p < 0.01). T anspa ency in Financial Repo ing (TFR) and Accoun abili y in Financial Repo ing (AFR) = 0.504 (p < 0.01). Since
he squa e oo o AVE o each cons uc is highe han i s co ela ion wi h o he cons uc s, his con i ms ha each cons uc is
dis inc om he o he s, he eby sa is ying he Fo nell-La cke disc iminan alidi y c i e ion (Fo nell & La cke , 1981). The posi i e
and signi ican co ela ions (p < 0.01) indica e mode a e o s ong ela ionships be ween he cons uc s, suppo ing hei heo e ical
linkages. The s onges co ela ion is be ween IPSAS Adop ion and Accoun abili y in Financial Repo ing (0.603), sugges ing ha
adop ing IPSAS enhances accoun abili y. The lowes co ela ion is be ween IPSAS Adop ion and T anspa ency in Financial Repo ing
(0.451), implying ha while IPSAS p omo es anspa ency, o he ac o s may also in luence inancial anspa ency. The Fo nell-
La cke C i e ion esul s con i m disc iminan alidi y, ensu ing ha each cons uc is empi ically dis inc om he o he s.
Addi ionally, he signi ican co ela ions suppo he heo e ical ela ionships among IPSAS Adop ion, T anspa ency in Financial
Repo ing, and Accoun abili y in Financial Repo ing, ein o cing he eliabili y o he measu emen model.
Table 5: Model Summa y o he e ec o In e na ional Public Sec o Accoun ing S anda ds on T anspa ency in Financial
Repo ing
Model
R
R Squa e
Adjus ed R Squa e
S d. E o o he Es ima e
1
.451a
.204
.200
.9328
a. P edic o s: (Cons an ), IPSA
ANOVAa
Model
Sum o Squa es
d
Mean Squa e
F
Sig.
1
Reg ession
44.083
1
44.083
50.666
.000b
Residual
172.272
198
.870
To al
216.355
199
a. Dependen Va iable: TFR
b. P edic o s: (Cons an ), IPSA
Coe icien sa
Model
Uns anda dized Coe icien s
S anda dized Coe icien s
Sig.
B
S d. E o
Be a
1
(Cons an )
2.045
.233
8.784
.000
PPO1
.436
.061
.451
7.118
.000
a. Dependen Va iable: TFR
No e: IPSA= In e na ional Public Sec o Accoun ing S anda ds; TFR = T anspa ency in Financial Repo ing
The model examines he e ec o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) adop ion on T anspa ency in Financial
Repo ing (TFR) using linea eg ession analysis. The esul s p o ide insigh s in o he s eng h and signi icance o his ela ionship.
R = .451: This indica es a mode a e posi i e co ela ion be ween IPSAS adop ion and anspa ency in inancial epo ing. R² = .204:
This means ha 20.4% o he a iance in T anspa ency in Financial Repo ing (TFR) is explained by IPSAS adop ion, while 79.6% is
in luenced by o he ac o s no included in he model. F-s a is ic = 50.666: This alue is high, indica ing ha he model explains a
signi ican po ion o he a iance in anspa ency. p- alue (Sig.) = .000: The signi icance le el is below 0.05, con i ming ha IPSAS
adop ion has a s a is ically signi ican e ec on anspa ency in inancial epo ing. The coe icien s able p o ides he speci ic
in luence o IPSAS adop ion on anspa ency. Cons an (B = 2.045, p = .000): This ep esen s he p edic ed le el o anspa ency
when IPSAS adop ion is ze o. IPSAS Adop ion (B = 0.436, p = .000): This indica es ha a one- uni inc ease in IPSAS adop ion
leads o a 0.436-uni inc ease in anspa ency in inancial epo ing. The p- alue o .000 con i ms ha his ela ionship is s a is ically
signi ican .
The indings sugges ha IPSAS adop ion signi ican ly enhances anspa ency in inancial epo ing. Howe e , wi h only 20.4% o
a iance explained, o he ac o s such as go e nance s uc u es, egula o y en o cemen , and o ganiza ional commi men may also
play a ole in imp o ing anspa ency. These esul s highligh he impo ance o adop ing IPSAS as a mechanism o enhance inancial
epo ing anspa ency in he public sec o .
Table 6: Model Summa y o e ec o In e na ional Public Sec o Accoun ing S anda ds on Accoun abili y in Financial
Repo ing
Model
R
R Squa e
Adjus ed R Squa e
S d. E o o he Es ima e
1
.603a
.363
.360
.8891
a. P edic o s: (Cons an ), IPSA
ANOVAa
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DOI URL:h ps://doi.o g/10.55677/GJEFR/07-2025-Vol02E10 pg. 1051
Model
Sum o Squa es
d
Mean Squa e
F
Sig.
1
Reg ession
89.365
1
89.365
113.056
.000b
Residual
156.510
198
.790
To al
245.875
199
a. Dependen Va iable: AFR
b. P edic o s: (Cons an ), IPSA
Coe icien sa
Model
Uns anda dized Coe icien s
S anda dized Coe icien s
Sig.
B
S d. E o
Be a
1
(Cons an )
1.412
.222
6.361
.000
PPO1
.621
.058
.603
10.633
.000
a. Dependen Va iable: AFR
No e: IPSA= In e na ional Public Sec o Accoun ing S anda ds; AFR =Accoun abili y in Financial Repo ing
The eg ession model examines he e ec o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) adop ion on Accoun abili y
in Financial Repo ing (AFR). The esul s indica e he s eng h, di ec ion, and signi icance o his ela ionship. R = .603: This alue
indica es a s ong posi i e co ela ion be ween IPSAS adop ion and accoun abili y in inancial epo ing. R² = .363: This means ha
36.3% o he a ia ion in Accoun abili y in Financial Repo ing (AFR) is explained by IPSAS adop ion, while he emaining 63.7% is
in luenced by o he ac o s no included in he model. F-s a is ic = 113.056: A high F- alue indica es ha he model explains a
signi ican po ion o he a iance in accoun abili y. p- alue (Sig.) = .000: Since he p- alue is below 0.05, i con i ms ha IPSAS
adop ion has a signi ican impac on accoun abili y in inancial epo ing. Cons an (B
= 1.412, p = .000): This indica es he p edic ed le el o accoun abili y when IPSAS adop ion is ze o. IPSAS Adop ion (B = 0.621,
p = .000): This sugges s ha a one-uni inc ease in IPSAS adop ion leads o a 0.621-uni inc ease in accoun abili y in inancial
epo ing. The p- alue o .000 con i ms ha his ela ionship is s a is ically signi ican . The indings demons a e ha IPSAS
adop ion signi ican ly enhances accoun abili y in inancial epo ing, explaining 36.3% o i s a iance. Howe e , o he ac o s such
as egula o y amewo ks, ins i u ional go e nance, and inancial moni o ing mechanisms may also con ibu e o accoun abili y. The
esul s emphasize he impo ance o adop ing IPSAS as a key d i e o imp o ing inancial accoun abili y in he public sec o .
Table 7: Hypo hesis Tes ing and Findings
Hypo hesis
Rela ionship
Be a
T alue
P alue
Decision
H1a
IPSA - -> TFR
.451
7.118
.000
Suppo ed
H1b
IPSA- -> AFR
.603
10.633
.000
Suppo ed
DISCUSSION OF RESULTS
The adop ion o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) has a posi i e and signi ican e ec on anspa ency in
inancial epo ing, p omo ing accoun abili y and us in public inancial managemen . IPSAS enhances he quali y and eliabili y
o inancial epo s by ensu ing s anda dized accoun ing p ac ices ac oss public sec o en i ies (Ch is iaens e al., 2021). By
manda ing acc ual-based accoun ing, IPSAS imp o es he accu acy, consis ency, and compa abili y o inancial s a emen s, he eby
educing in o ma ion asymme y and enhancing anspa ency (Lapsley e al., 2020). Fu he mo e, IPSAS adop ion s eng hens
s akeholde con idence by p o iding imely and ele an inancial in o ma ion, which enables in o med decision-making (B usca e
al., 2019). Compliance wi h IPSAS also minimizes he isk o inancial mismanagemen and co up ion by es ablishing clea epo ing
guidelines and disclosu e equi emen s (Pwc, 2021). Empi ical s udies con i m ha public ins i u ions implemen ing IPSAS epo
highe le els o anspa ency, as inancial s a emen s become mo e accessible and unde s andable o audi o s, egula o s, and he
public (Adhika i & Mellem ik, 2022). IPSAS adop ion se es as a undamen al ool o imp o ing anspa ency in inancial
epo ing, ensu ing ha go e nmen expendi u es, e enues, and liabili ies a e p ope ly accoun ed o , he eby s eng hening public
us in inancial go e nance.
The adop ion o In e na ional Public Sec o Accoun ing S anda ds (IPSAS) has a signi ican posi i e impac on accoun abili y in
inancial epo ing. IPSAS enhances accoun abili y by ensu ing ha inancial s a emen s a e p epa ed based on globally accep ed
p inciples, educing disc e iona y epo ing and inancial mismanagemen (Ch is iaens e al., 2021). By en o cing s anda dized
accoun ing p ac ices, IPSAS imp o es inancial o e sigh and ensu es ha public ins i u ions a e held esponsible o hei inancial
decisions (Adhika i & Mellem ik, 2020). One o he key ways IPSAS p omo es accoun abili y is by enhancing inancial disclosu e
equi emen s. Public sec o o ganiza ions a e equi ed o p o ide de ailed and anspa en inancial s a emen s, which allows
s akeholde s, including go e nmen agencies and he public, o sc u inize inancial ac i i ies (PwC, 2022). This inc eased
anspa ency minimizes oppo uni ies o audulen ac i i ies and s eng hens in e nal con ol mechanisms (B usca e al., 2019).
