Adoption of International Public Sector Accounting Standards and Financial Reporting Quality in Universities in Rivers State

In spite of the adoption of International Public Sector Accounting Standards (IPSAS) in Nigeria, it appears that significant progress has not been made by public sector organisations in its implementation. The purpose of this study was to investigate the extent to which the adoption of IPSAS has influenced financial reporting quality in universities in Rivers State. Cross sectional survey research design was used for the study and the area of the study was Rivers State, Nigeria. The population of the study was 37 senior Accounting Personnel from the three universities studied. The entire population of 37 was used as sample, hence census was employed for the study. The instrument used for the collection of data was a self-structured questionnaire developed using a four-point rating scale of Very High Extent, High Extent, Moderate Extent and Low Extent. The instrument was validated by two Business Educators and one Measurement and Evaluation expert, all from the Faculty of Education, Rivers State University. The reliability of the instrument was determined using the test re-test method; this was done through the Pearson Product Moment Correlation Coefficient (PPMCC) and a reliability coefficient of 0.96 was obtained. Data was analysed using mean and standard deviation while the hypothesis was tested using one-way Analysis of Variance. Based on the results of the study, it was found that the adoption of international public sector accounting standards has influenced financial reporting quality in universities in Rivers State albeit to a moderate extent. The study further found that there was significant difference in the mean score of Senior Accounting Personnel in the three universities on the extent to which financial performance, financial position and cash flow standards have influenced financial reporting quality in universities in Rivers State. The study concludes that universities in Rivers State are still at an elementary stage of the adoption of IPSAS in the preparation of financial statements and as such the quality of their financial statements cannot be reasonably assured. One recommendation made, amongst others, was that Accounting Personnel of universities in Rivers State, especially those handling Final Accounts, should be made to undergo thorough training on IPSAS to enhance their financial reporting skills; the training should be practical and not theory-based and experts who have been involved in the successful implementation of IPSAS should champion the process.