AN ANALYSIS OF THE EFFECT OF IPSAS IMPLEMENTATION ON THE ACCOUNTABILITY OF CROSS RIVER STATE PUBLIC SECTOR IN NIGERIA

ABSTRACT: This study examines the effect of the implementation of International Public Sector Accounting Standards (IPSAS) on public accountability in the Cross River State public service in Nigeria, using transparency as a proxy for accountability. Specifically, the study evaluates the impact of the IPSAS accrual method and investigates the effect of the IPSAS cash method on transparency. A descriptive survey design was employed, targeting staff from key financial and audit departments within the Accountant General’s Office. A sample of 151 respondents was selected from a population of 401 using Taro Yamane’s formula. Primary data were collected through a questionnaire, and the ordered logit and probit regression models were used as statistical analysis. The findings revealed that the IPSAS accrual method (IPSASAM) has a positive and statistically significant effect on transparency, indicating that accrual-based accounting enhances the comprehensiveness and accountability of public financial reporting. Conversely, the IPSAS cash method (IPSASCM) shows a positive but non-significant effect, suggesting limited impact due to its focus solely on cash transactions, excluding accrued assets and liabilities. The overall model showed low explanatory power, implying that other contextual factors such as political will, institutional capacity, and governance mechanisms also play crucial roles in promoting public accountability. Based on these findings, the study concluded that while IPSAS implementation, particularly the accrual method, is a step toward improved public financial management, it must be supported by broader institutional reforms. It is recommended amongst others that the Cross River State government should support full accrual-based IPSAS implementation in its public financial management as well as put in place stronger internal controls and capacity development to enhance the limited benefits of the cash-based method. Keywords: IPSAS implementation, cash basis, accrual basis, public sector accountability transparency.