Abstract:
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ABSTRACT
This examined the effectiveness of International Public Sector Accounting Standards Adoption
on Preparation of Financial Statements in Longido District Council. Specifically, the study
examined that the extent of IPSAS compliance in the preparation of financial statements,
determined the influence of IPSAS adoption on transparency and accountability in financial
reporting and management and assessed the role of stakeholder engagement in the successful
adoption of IPSAS. This study employed institutional theory. This case study employed a mixed
research approach with a population of 340 Longido District Council employees. A combination
of simple random and purposive sampling methods was used, and data were gathered through
closed-ended questionnaires, interviews, and document review. Quantitative data from
questionnaires were analyzed using SPSS v26, while qualitative data from interviews underwent
content analysis. The study revealed that the extent of IPSAS compliance in the preparation of
financial statements within council has made significant strides in IPSAS compliance, some
local government authorities still face challenges in fully adhering to the standards. The study
unveiled that adoption of IPSAS has positively influenced transparency and accountability in
financial reporting and management. The improved financial reporting practices have led to
increased public trust and better management of resources. Moreover, the study indicated that
stakeholder engagement has played a pivotal role in the successful adoption of IPSAS. The
active involvement of various stakeholders, including government agencies, civil society
organizations, and the public, has facilitated the effective implementation of IPSAS. The study
recommends that the council should focus on improving IPSAS compliance by investing in
capacity building and staff training, with ongoing monitoring and evaluation to ensure
consistency. Future research on IPSAS adoption and its effects on transparency and
accountability should explore cross-cultural comparisons to understand cultural factors at play
