Evaluating Factors Predicting Smooth Transition to the International Public Sector Accounting Standards in Nigeria.

Evaluating Factors Predicting Smooth Transition to the International Public Sector Accounting Standards in Nigeria.

Dr. Emmanuel I. Ogbenjuwa; Ph.D
Accounting, Nigerian College of Accountancy, Jos, Nigeria

DOI: https://doi.org/10.47772/IJRISS.2023.7489

 Received: 22 March 2023; Revised: 29 March 2023; Accepted: 03 April 2023; Published: 15 May 2023

ABSTRACT

The study is an evaluation of factors affecting smooth transition from Statement of Accounting Standards to the International Public Sector Accounting Standards (IPSAS) by Nigerian public sector entities. The predictive variables were analyzed using the proxies of public perceptions and attitudes towards IPSAS, skills and competencies of accounting practitioners and adequacies of legal and regulatory frameworks to drive the adoption. Scholars argued that IPSAS will lead to more quality and transparent financial reports in the public sector.The adoption journeys in Nigeria, has being marked with wobbling attempts at cash based to accrual based IPSAS due to unpreparedness and institutional failures leading to several shift of deadline for mandatory adoption. The study employed theoretical framework of institutional adequacy and attitudinal change, and agency theories. Survey research non experimental design aligns with the behaviours of the variables under study and so was adopted. To check for reliability of the instrument, I calculated the Cronbach’s alpha and the bivariate correlation coefficient to determine how closely linked items are with each other in the scale.  The result fall along acceptable Cronbach of .76. The use of Likert Scale correlates with its long standing history of reliability in social science research. Descriptive statistics was employed to specify the nature of the variables prior to main effect analysis. Multicollinearity diagnosis was adopted to check for any overlapping relationship between the variables and Z-score statistics to test for outliers in the data set and clean up my data set by testing for all statistical assumptions. Stratified sampling strategy was found most appropriate to draw representative samples from the sampling frames. 640 respondents were sampled with 20 non respond. This represents mere 3.125% as missing data which is considered of no significant effect on the data. Data was analyzed using multiple regressions and Pearson Correlation coefficient to test the hypothesis and assess the relationship between the variables. The result indicates that there exists significant relationship between the independent and dependent variables, and that negative public perception and low political will are strong barriers to successful implementation of same in Nigeria. Respondents held that Nigeria accountant are not skilled and competent to handle the migration to accrual IPSAS and legislative and regulatory framework is not adequate enough to support IPSAS adoption. The study recommends curriculum overhauls, enacting and amendments of relevant laws to accommodate the teaching and regulation of IPSAS adoption in the public service.

Keywords: Accounting Standards, Convergence, Financial Reports, Globalization,

INTRODUCTION

Nigeria government announced the adoption of International Public Sector Accounting Standards and its private sector equivalent (IFRS) in 2010. According to the then, minister of commerce, Martin- kuye, Nigeria was joining the international committees’ financial reporting space, by adopting the high quality reporting standards. Martin- kuye (2010) posited that Nigeria will greatly benefit from the adoption of the global reporting standards.

There has being beehives of discuss on the desirability or otherwise of adopting the uniform standard since the adoption decision by the Nigerian government. Garuba and Donwa (2010) argued that Nigeria public sector will be positively impacted by the adoption decision.Some of the benefits of adopting IFRS/IPSAS are

• Enabled comparability of financial reports
• Increased foreign direct investment
• More reliable and comprehensive reporting by entities
• Ease in cross borders listing of local companies, increased transparency and
• Accountability in public sector financial management.

Reporting standards are guides for preparation of financial reports as stewardships’ responsibilities. Reporting standards ensure that financial reports reveals minimum mandatory information disclosure necessary for strategic decision making by stakeholders. Stakeholders such as shareholders, prospective investors, staff union, tax authorities, creditors, competitors, customers and government are interested in the performances and state of affairs of organization of interest. States of affairs are conveyed by the annual financial reports. Financial managers could decide to craft the financial reports in such a way, as to mislead the stakeholders by manipulating the elements of interest. Therefore reporting standards are to ensure that managers prepare financial reports in alignment with disclosure requirements specified therein.

STATEMENT OF PROBLEM

The introduction of IPSAS/IFRSportents great and sweeping chances to the form and content of financial reporting for reporting entities in the country and bestows new responsibilities on the regulatory agencies and professional bodies in Nigeria. Scholars assert that the new reporting standards crafted offshore may introduce changes which are not in alignment with attributes of Nigeria financial reporting cultures. Garuba and Doruwa(2010) held that a lot controversies are being generated by the announcement of the adoption decision in the country. The introduction of IPSAS/IFRS therefore has brought a number of challenges and met with attitudes of hostilities, pessimisms and reluctance on the partt of preparers of financial statements.

The incumbent regulatory body, the Nigeria Accounting Standard Board is considered to be weak in structures to support the needed compliance with a mandatory adoption. The country is riddled with multiple overlapping legislations on financial reporting and regulatory agencies of government. Provisions of the Companies and Allied Matters Acts, (CAMA 1990),Banks and Other Financial Institutions Acts, (BOFA),Statements of Accounting Standards and multiple monetary /financial regulations and fiscal policy circulars, are adjudged to overlap in clauses. Regulatory agencies such as ; Central Bank of Nigeria, Public Accounting Committee of the National Assembly, Nigerian Accounting Standard Board, and the Office of the Auditor General of the Federation  are often at heads collision in their functions of implementing financial reporting in the public sector.The absence of clear cut provisions in the SAS for public sector and private sector reporting was a subject of confusion for preparers of financial reports using the SAS.

The power sectorin Nigeria is very epileptic, ineffective and unstable. Scholars questioned how IPSAS which is substantially a system driven software standard, can be implemented in country with unstable power supply as Nigeria. The new global standard is a huge departure in the pattern of financial reporting and substantially varied the teaching curriculum in colleges and universities. This is a big challenge to teachers of accounting in universities and colleges around the country.

Nigeria legal system is not adequately structured to compel implementation of IPSAS and has no sufficient punitive prescription for deviants to the extent that compulsory adoption cannot be enforced. Over (ten years) a whole decade after the adoption decision by the federal executive council, accountants and auditors in the public sector are still battling with difficulties in the implementation of IPSAS as a driver to preparing reliable financial reports for their MDAs.

EMPIRICAL STUDIES

One of the justifications for research is the existence of research gaps or limitations in existing body of literature on the phenomenon. There is a growing research on the adoption of public sector accounting standards In Nigeria. Scholars are of the opinion that the new reporting standard is complex and requires daunting disclosure requirements. Brenner Jeacola and Watkins (2012) held that there is urgent need for optimal strategies in teaching and learning of the adopted standard by reviewing existing curriculum of studies.

Ihijeagbon 2010; Garuba and Donwa 2011; hail, Leuz and Wysocki, 2009; Hartnell and Ou 2011; Iyola and Faboyede, 2011; and Okafor and Ogeidu, 2011; all held that the adoption of the global uniform standard will bring huge economic benefits to the adopting countries. Scholars posited that adopting the uniform standard will ease understanding of business language, as diversity inherent in most local standards will be eliminated. Prior studies emphasized that IPSAS demonstrate higher quality standard and will lead to a better quality reporting, increase comparability and reliability of financial reports. Garuba and Donwa posited that adopting IPSAS will translate to high quality and transparent reporting and will inadvertently attracts more foreign direct investment and growth of business and of local economics, Ihijeagbon (2010) however, pointed at the paucity of skilled manpower to drive the adoption. According to Ihijeagbon, Nigeria is deficient in relevant educational curriculum, insufficient legal framework and has overlapping jurisdictions of regulatory agencies.

The radical and huge change in financial reporting responsibilities is bound to produce inefficient reporting by entities. According to Ogunbameru (2004) organization and their staff are put under pressure due to the speedy and rapid changes. Such variations are bound to put the organization under undue pressure and confusion. There will be huge training expenses, changes in accounting processes, technical requirements and overhaul of organizational structures. This is akin to the cultural changes envisioned by Achebe (1986) who held that the advent of the white man to Africa brought about huge changes unwelcomed to the nations. The resistance to the changes in the world of Achebe, resulted in violence and confusion.

The study employ theoretical framework of institutional adequacy and attitudinal change and analyzed the effect of IPSAS adoption in Nigeria. I therefore evaluated perception of stakeholders as attitudinal factor and institutional adequacies was analyzed using the proxies of skilled manpower, regulatory and legal framework.

RESEARCH QUESTIONS

Research questions are of the renderingof research problems in questions seeking responses.According to Creswell (2009) a quantitative inquirer specifies descriptive questions for each of the variable followed by inferential questions which relate variables or control groups. A quantitative question may compare groups on an independent variable, or analyze response to mediating independent or dependent variable to relate independent variables to dependent variables.

The research questions here provide insight intothe relationship between institutional adequacy and the adoption of IPSAS in Nigeria. Academic and curriculum relevance,regulatory environment, competent manpower are all proxies to institutional adequacy, as group on independent variables. Successful adoption of IPSAS represents the outcome or criterionvariable and legislative framework as mediating variable.

The first central questions for the study are:

• How adequate and effective is the accounting regulatory framework in Nigeria?
• How adequate and reliable was the reporting culture in the Nigerian public sector prior to IPSAS adoption?
• How competent and skillfulare the professional accountants in Nigeria.
• How adequate is the legislative framework to drive and enforce mandatory financial reporting in Nigeria.

THE IMPORTANCE OF THE STUDY

The study is an empirical evaluation of factors predicting transition from Statement of Accounting Standards, referred to as the local standards (SAS)), to International Public Sector Accounting Standard (referred to as the global standards). The study’s prime objective is to specifically evaluate the adequacies of the reporting entities to seamlessly transit to IPSAS. Such adequacies are measured by the proxies of skilled and competent manpower, and enabling structures.  I will therefore examine the infrastructures, attitudinal and institutional adequacies necessary to drive the adoption of IPSAS in Nigeria.

I will assess the reporting structures available to support the smooth implementation of IPSAS, such as legislative and regulatory framework, academic and teaching curriculum in the country and logistics needs such as stable power to support the utilization of the application software.

Hypothesis Formulation

Hypothesis is a tentative statement of relationships between variables. It is a declaration usually in a negative form of non-existence of relationship between the variables. Data are collected to test the hypothesis, to either confirm or not being able to confirm the null hypothesis (Ho). In the absence of supportive statistics, researchers are usually not able to confirm but not to reject the null hypothesis. When this happens the alternative hypothesis is accepted.

For this study, three hypothesis are advanced as follows:

Hypothesis 1: Ho There is no significant relationship between Attitudes and Perceptions and the successful implementation of IPSAS in Nigeria

                         Hi There exists significant relationship between attitudes and perception and implementation of IPSAS in Nigeria

Hypothesis 2: Ho There is no significant relationship between skills and competencies of accounting practitioners and successful implementation of IPSAS in Nigeria.

                            Hi There exists significant relationship between skills and competencies of accounting practitioners and successful implementation of IPSAS in Nigeria.

Hypothesis 3: Ho There is no significant relationship between adequacies of regulatory and legislative framework and successful implementation of IPSAS in Nigeria.

Hi  There is statistically significant relationship between adequate regulatory and legislative framework and IPSAS implementation

RESEARCH METHODS

The study adopts a quasi-experimental quantitative design. This is most appropriate for the study of social attributes. Research method is the researchers’ approach to conduct empirical study. This involves the data collection, sampling strategies, data analysis, and the research design. In choosing the method of research, Creswell (2009) argued that the ontology or philosophical assumptions of the researchers substantially determines the preference. Philosophical assumption shapes the world views of the researcher. World views are the set of beliefs that undergird the selection of actions and methods of inquiry Creswell (2009).  Such world views are post positivism, constructivism, advocacy and pragmatism. Creswell (2009) held that research strategies flowing from selected methods are the specific designs or models embedded on either the qualitative or quantitative or mixed method of approaches. The major dilemma of researchers is the choice of methodologies that best fit the problem of study.

Crandell, Voils, Chang & Sandelowski, (2011) posited that synthesizing generalizable findings from diverse methodologies entails alignment of methodologies to research problems. The task of a researcher is to align the method with the problems of study from designed philosophical views.  The study adopts the quantitative methods of inquiry because the study seek to analyze relationship between variables. Within the strand of quantitative study, the study adopts a survey design, as it strategically state the purpose of the study, identify the population and determine the sample size using statistical model and survey instruments, state research questions and hypothesis, reveal the data analysis statistics, interprets the data and relate variables in the study.

Social variables cannot be controlled and randomization is not feasible as such pure experiment is not appropriate, though rich in internal validity, thus, rejected. To make up for the weakness of internal validity associated with a quasi –experiment, I will use rich parametric statistics to ameliorate such weaknesses. Nachmias and Nachmias (2008) posted that social, political and certain ethnic variables cannot be controlled, as such, impede the application of pure experiments.

Sampling Strategies

The study examines institutional and attitudinal variables as predictors to successful adoption of international public sector accounting standards. Population of interest will be groups directly impacted by the adoption of the global standard. Such groups are preparers of financial reports (professional accountants),Management and Directors of ministries, department and agencies in the country, National Chambers of Commerce, Industries , Mines And Agriculture,  office of Accountant General and that of Auditor General for the Federation, staff of regulatory agencies such as Central Bank of Nigeria, Federal Ministry of Finance, Cooperate Affairs Commission, the Public Accounts of the National Assemblies and financial reporting council of Nigeria. These are the stakeholders directly impacted by the implementation of the new reporting standards.

Sampling the entire population of interest is a near impossible task. Therefore a study of a representative samples is imperative. The strategies adopted to ensure that a selected sample truly represents the entire population will enable valid generalization of the findings. According to Nachmias and Nachmias (2008) the determination of sample size is anchored on the value of the standard error and the confidence interval. Sherperis (2016) held that before carrying on a study, it is necessary to conduct power analysis so as to determine the appropriate sample size. In doing this, the chances of committing Type I or Type II errors is minimized. A simple and straight forward approach to calculating a sample size is found in ‘G^x 3 power ’statistical software. The G power calculates sample size from given alpha level statistical power and the effect size. Alpha level measures the chances of error while the effect power indicates the chances of finding a statistical significant difference in the model.

The following result were obtained from the G power statistics.

Alpha = .05

Effect size = .25

Critical = 1.9599640

Odds of = 1.3

Sample size = 620 participants

My population of interest is grouped into three levels of: preparers of financial reports, users of accounting reports and regulators of accounting practices.

I adopted a stratified sampling strategy to enable me draw samples from frames which are representatives of different groups of the population. Frank fort- Nachmias and Nachmias (2008)held that the stratified sampling aids representation of different groups within the populations and ensures that estimations of parameters are accurate. I have therefore divided my samples into homogenous strata. I will disproportionally stratified my samples due to fluctuating characteristics of each variable within the stratum.

MEASURING SCALE

The instruments of measurement for the independent variables are:

• Attitudes and Perceptions Scale (APS)
• Skilled and Competent Practitioners Scales (SCPC)
• Legislative and Regulatory Framework Scales (LRFS)

While the outcome variable is measured on Financial Report Quality Indicators Scale (FRQIS)

 FRQI=AP + SCP + LRF

A five point Likert scale on which responses are graded from 1 to 5 will indicate participants’ perceptions of the new reporting standards. A descriptive power is computed for each of the respondent. This is done by calculating the internal consistency coefficient to differentiate low scores from high scores in the scale.

Validity and Reliability of the Instruments

Validity is to ensure that the instrument indeed measured what the researcher set out to measure. An instrument that end up measuring the hemoglobin level when the researcher actually intended to measure the glucose level in the blood will serve no good purpose and is therefore not a valid instrument.

Reliability on the other hand deals with the consistency of the instrument to turn out same result under similar conditions at different times.

The Likert scale has a long standing history of reliability in social science research. The instrument was developed by Wayne Kirchner and was used to measure attitudes for the employment of senior staff. Frankfort-Nachmias and Nachmias (2008). According to Green and Salkind (2011) researchers conduct the internal consistency rate of the instrument. To check for reliability of the instrument, I calculated the Cronbach’s alpha and the bivariate correlation coefficient to determine how closely linked items are with each other in the scale.  Field (2009) argued that a Cronbach value of .7 to .8 is an indicator of reliability of the instruments.

DATA ANALYSIS

Analysis of data provides the basis for the findings and drawing of valid generalization. The result of the data analysis provides meanings to the computations of the data collected and communicates sensibly to the research community in a scientific manner. The choice of data analysis statistics depends on the behavior of the variables and the nature of the problem of study. Strong and robust statistics increases the internal validity and ameliorate for the weakness of non-experimental designs. A wrong choice of statistics could lead to spurious outcome and conclusion. A parametrical statistics provides a better analysis than non- parametric particularly for categorical data which are measured on nominal scales.

For the purpose of the study, I deployed descriptive statistics which will aid me to specify the nature of the variables and organize my data for main effect analysis. According to Osuala (1993) descriptive statistics allows the research to gain deeper understanding of the phenomenon. Thereafter, I deployed inferential statistics for the purpose of making inference and generalization.

My outcome variable will be measured on a categorical nominal scale of successful or unsuccessful adoption. While the predictive variables will be measured on continuous scales. The study therefore adopts multiple regressions to test the hypothesis. Pearson Correlation coefficient will be used to assess the relationship between the variables. I initially checked for outliers in my data set using the Z-score statistics and clean up my data set by testing for all statistical assumptions. I also carried out multi-collinearity diagnosis by checking for overlapping effects of variables within the study.

 Survey Participants Demography      

Six hundred-twenty participants took part in the study.  Their demographic details are according to educational level, gender, age, professional membership status, work experience, industries, and cadre are follows:  The distribution according to education attainment are: 39 representing 6.3% had school certificates, 250 representing 40.4% possessed postsecondary school certificates, and 330 representing 53.3% had postgraduate studies certificates.  The distribution indicates that 580 representing 93.7% had adequate educational knowledge to appreciate financial reporting issues.  It shows that none of the participants was illiterate.

The gender distribution shows that 401 representing 64.6% of the participants were male as against 217 representing 35% female participants.  This is a reflection of gender imbalance in the Nigeria workplace and confirms the 33% affirmative action of the federal government on gender equality.

The age distribution shows that all participants are adults, ranging from 19 years and above.  Participants within the age bracket of 19 to 30 years were 143 (23.1%), 31 to 40 years were 320 (51.7%), and 40 years and above were 156 (25.2%).  The greater number of the work force lies within the age bracket of 31 to 40 years, as 52% of participants were of this age bracket.

Exactly 386 participants reported having membership of different professional associations.  This figure represents 62.3% of the total participants while 234 or 37.7% had no professional membership.  It indicates that 62% of the participants were very knowledgeable in their professional fields.  It gives credence to the validity of their responses to the survey.  Four-hundred-three participants had over 11 years work experience and are able to speak from informed knowledge about their institutional framework.  This figure represents over 65% of the sampled population. Three-hundred-sixty-six supervisory staff, 125 Management staff, and 129 operational staff were sampled.  This is because preparers of financial reports and users of same are in the middle and top management cadre of the organizations.

Results

Table 1 Participants by Industry

The standard error of the estimate which shows how close the result is to the parameter was used to validate the sample size SE = S1√n : : n = S2 / SE

S²_i        =          Σ(x – x)²

                            ni – 1

Of the 640 participants administered the survey, 620 returned the completed questionnaire, 20 failed to do so.  The number represents less than 4% of the sample size.  The non response rate did not significantly affect the validity of the study.

Ethical issues were fully met as participants were willingly drawn with informed consent.  Sufficient permission were obtained where necessary, to administer the survey to staff and members of various organizations.  Confidentiality was ensured in drafting the survey instrument by making the participants unanimous.  Participants took time to go through the questionnaire and returned same after reasonably agreed time.  No participant was induced by promised of reward or threat of open or subtle punishment for non participation.  To this end, every participant was informed at their willing choice to participate and could exit when they choose to do so.

Table 2, 3 and 4 presents the descriptive statistics of the 3 independent variables of Attitudes and Perception of IPAS; availability of Skilled and Competent Manpower; and Adequacy of Legislative and Regulatory Framework to drive successful adoption of IPSAS in Nigeria.

Table 2: Descriptive Statistics of Attitudes and Perception about IPSAS

Source: SPSS 2023 field survey

From the table above, perception of IPSAS as a neocolonialist economic tool has the minimum mean value of 4.328 and a standard deviation of .8780, while universities and colleges curriculum gaps scored the highest mean of 4.875 and a standard deviation of .8752. This positive high mean indicates that most respondents consent that curriculum gap is a major challenge to IPSAS adoption in Nigeria.

This goes to illustrate that the inadequate teaching of IPSAS in educational curriculum is a major hindrance to successfully adoption of IPSAS. The mean and standard deviation for this proxy of independent variable serve with ten points on a five point like scale showed that inadequate knowledge is the major obstacle to IPSAS implementation.

Table 3: Descriptive statistics on availability of Skilled and Competent Manpower

Source: SPSS 2023 Field Survey

Consistent with Table 3 statistics on availability of skilled and competent manpower  the absence of required skills to converge IPSAS scored the lowest mean of 4.195 and standard deviation of .87540, whereas insufficient teaching materials on IPSAS scored the highest mean of 4.950 and standard deviation of .96651. This aligned with table two analysis. Therefore the universities and colleges do not produce skilled and competent professionals to drive successful adoption of IPSAS as there are no sufficient guiding materials on IPSAS adoption in Nigeria leading to huge cognitive gaps.

Table 4: Descriptive Statistics on Legislative and Regulatory Framework

Table 4 is the analysis of adequacies of legislative and regulatory framework. The results indicate that insufficient knowledge of members of public accounts committee of the national assembly has the least impediment on IPSAS adoption as it has the least mean of 4.190 and a standard deviation of .75150 whereas inadequate understandings of IPSAS by regulatory agencies scored the highest mean of 4.890 and standard deviation of .87450. The implication is that the high positive mean shows that most respondents assent that the lack of adequate understanding by staff of regulatory agencies impedes smooth transition of IPSAS in Nigeria.

            The result of Tables 2, 3 and 4 blends beautifully to demonstrate that curriculum gaps (as revealed in table 2), leading to paucity of necessary IPSAS materials (as shown in Table 3) and consequently unskilled workforce of regulatory agencies frustrate smooth implementation of IPSAS in Nigeria.

Multi Collinearity Diagnosis

This statistics is used to check overlapping relationship between two or more predictive variables. Multi collinearity is ruled out if there is correlations of less than 0.9, VIF below 10 and tolerance statistics above 0.2 (Field 2009), yet Gujaranti (2003) held that correlations in excess of 0.80 indicate serious collinearity. Kennedy (1992) aligns with Field (2009) as he argued that if continuous variables exhibit correlations in VIF in excess of 10, then there is reason to worry about the presence of multi-collinearity among variables. Therefore the multi collinearity table below is a statistical test of the existence of tight correlations between explanatory variables in the study.

Table 5: Tolerance Statistics for Attitudes and Perceptions, Skilled Manpower and Adequate Regulations and IPSAS Implementation in Nigeria.

The table above revealed the tolerance coefficients and VIF of the 3 predictive variables. The highest VIF is associated with regulatory framework at 4.750 and the lowest is that of attitude variable at 3.175. The highest Beta is .610 (regulations) and the lowest is .195 (attitudes), whereas the highest and lowest tolerance of .320 (attitude) and .280 (regulations) respectively. The result of both the VIF and tolerance coefficients rule out the presence of multi-collinearity between the explanatory variables. Multi-collinearity is not an impediment in our medal.

Pearson Correlation Statistics

This statistics analysis the measure of correlation between the 3 predictive variables. It checks the strength of linear dependence between the variables. The p-value indicates the significance of the relationship. The (r) which is the value of the strength determines the type of relationship between the variables. The significance level, p<0.05,  as popularly used in social science research indicates there is a 5% chance that relationship does not exist which means 95% chance of the existence of relationship.

Table 6 Pearson Correlation Coefficient

From the analysis in Table 6, the three predictive variables tested here shows there is significant relationship between the three independent variables of attitudes, skills and regulations and implementation of IPSAS in Nigeria (the dependent variable). Positive values indicate positive relationship while negative values indicate negative relations. All the variables have positive values of between +1 and – 1 (.590, .810 and .450) with skills has the highest predictive power. Attitudes is correlated with Skills and regulations at .801 and .540 respectively, while skills relates with regulations at .320 to drive IPSAS’s adoption.

Multiple Regression

            Regression analysis tests the effects of the three independent variables (attitudes and perception; skills and competences and regulatory and legislative framework) on the successful implementation of IPSAS in Nigeria. The ‘goodness of the fit’ statistics explains the variance in the dependent variables as a function of the variation in the three predictive variables.

Table 7: Goodness of the Fit

Model Summary

1. Predictors (constant), attitudes, skills, regulations

Source: SPSS multiple regression

The R² and adjusted R² indicate the fitness of the model, significant F (3, 620) = 472.428, P = .000. The value of the adjusted R² measures the fitness of the model better, than the R² due to the modification limitation of the latter. Value of adjusted R² is .722 which shows that the variation in the dependent variable is 72% explained by the independent variables. The result is an empirical indication that the independent variables are the main predictors of the dependent variable.

The three independent variables of altitudes, skills and regulations (Altitudes and perception, p-value = 0.000), skills and competencies p-value = 0.000 and regulatory and legislative framework p-value = 0.000) were all statistically significant at p < 0.05. Altitudes and perception had a significantly positive relationship and IPSAS implementation with regression coefficient of .195 and p. value of 0.000 (P<.05) and regulatory and legislative framework also had a significantly statistical positive relation with IPSAS implementation with regression coefficient at .610 and p-value of 0.000 (sig p<.05) see table 4.

Testing the Hypotheses

Hypothesis 1: Ho There is no significant relationship between Attitudes and Perceptions and the successful implementation of IPSAS in Nigeria

Statistics could not support and confirm this hypothesis, therefore the alternative hypothesis is accepted that there is indeed a statistically significant relationship between attitudes and perception with implementation of IPSAS in Nigeria.

Hypothesis 2: Ho There is no significant relationship between skills and competencies of accounting practitioners and successful implementation of IPSAS in Nigeria. Statistics did not support the null hypothesis, therefore the alternative hypothesis is accepted that there is indeed a statistically significant relationship between skills and competencies of accountants and implementation of IPSAS in Nigeria.

Hypothesis 3: Ho There is no significant relationship between adequacies of regulatory and legislative framework and successful implementation of IPSAS in Nigeria. Statistics did not support the null hypothesis, therefore the alternative hypothesis is accepted that there is indeed a statistically significant relationship between adequacies of regulatory and legislative framework and implementation of IPSAS in Nigeria.

DISCUSSION

This section presents the effects of factors affecting the implementation of international public sector accounting standards in Nigeria. The discussion flows from the results of data analysis above, sand-witched within prior empirical studies. Statistics support that there is significant relationship between the independent and dependent variables. Hypothesis were tested using the results of the regression and correlation between the variables. We analyzed the effect of attitudes and perception of Nigerian IPSAS, the effect of skilled and competent manpower and legislative and regulatory adequacies on the successful implementation of IPSAS in Nigeria.

Statistics support the alternative hypothesis on all the three variables that there exist significant relationship between the independent and dependent variables.

Respondents overwhelming asserted that negative public perception unwillingness of stakeholders to embrace the new reporting standards and low political will to enforce IPSAS are strong barriers to successful implementation of same in Nigeria. In response to the effect of skilled manpower, respondents hold that Nigeria accountant are not skilled and competent to handle to immigration to accrual IPSAS. Statistics supports the assertion that there exists wide gaps in the educational curriculum does not blend with teaching of IPSAS in the universities and colleges in Nigeria. Respondents asserts that there is pavcity of professionals skilled in IPSAS in Nigerian public sector. Statistics support the alternative hypothesis on all the three variables, that there exist significant relationship between the independent and dependent variables.

Respondents overwhelmingly asserted that negative public perceptions, unwillingness of stakeholders to embrace the new responding standards and low political will to enforce IPSAS are strong barriers to successful implementation of same in Nigeria.

In response to the effect of skilled manpower, respondents hold that Nigeria accountant are not skilled and competent to handle to migration to accrual IPSAS. Statistics supports the assertion that there exists wide gaps in the educational curriculum and this negatively impacts on the successful implementation of IPSAS in Nigeria.

This aligns with Okafor and Ogeidu (2011) who argued that our educational curriculum does not blend with teaching of IPSAS in the universities and colleges is paucity of professionals skilled in IPSAS in Nigeria public sector. Statistics support the assertion that the internal audit of public entities are not competent enough IPSAS to enable them perform their control duties.

Therefore the absence of skilled and competent manpower in the public sector is a demotivation to successful IPSAS implementation in Nigeria with respect to legislative and regulatory framework is weak, bedeviled with overlapping provisions and jurisdictions and exhibit life gaps with regards of IPSAS implementation in Nigeria. It was discovered that officers of regulatory agencies, whose duties it is to enforce implementation of IPSAS and regulate the preparation of IPSAS based financial statements, are not versed enough on the concept of the new global reporting standard. Therefore the legislative and regulatory framework is not adequate enough to support IPSAS implementation statistics revealed that legislative and regulatory framework is statistically significantly positively related to IPSAS implementation.

Implication for further Studies and Social Change

The outcome of the study could lead to further academic discussion on the effects of adopting uniform standards for reporting with a view to providing clear road map for seamless transition by entities. The findings will aid management in developing clear road maps, assess their structural needs, overcome impediments and fast-track their implementations plans within reasonable time frame. The legislatures and government could use this study as a call to deepen their commitments and political will towards overhauling existing legislations and enforce mandatory adoption of the uniform global reporting standards in the public sector of Nigeria.

CONCLUSIONS

From the foregoing and consistent with prior literature, IPSAS implementation in Nigeria  suffers slow pace due to poor perception, negative attitudes, absence of skilled and competent manpower in the public service and weak legislative and regulatory framework in Nigeria. The office of the accountant General of the Federal had severally moved. The timeline for compulsory adoption of IPSAS by MDAs. This is obviously due to the state of unpreparedness of public sector accountants and auditors. Most MDAs till date have their financial statements prepared for them by the engaged statutory auditors. This is a large fraud and completely unethical practices. The external auditors (statutory auditors) are engaged to examine and report on the prepared financial reports of establishment. This an unwholesome act for the external auditors to prepare and report on same financial statements. But this practice has subsisted in most MDAs because the public sector accountant have not upgraded their skills and competencies many chief executives of MDAs have not helped in this responds due to their non-supportive roles  in training and retraining of accountant and auditors in the public service.

This study recommends the institutionalization of the training of accountants and auditors in the MDAs by securing a specific budget line for same with responds to public accountability and reporting with partial reference to the harmonization of public sector financial regulations, public account committee Acts and financial reporting Acts to be converged with the contents of IPSAS.

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