Effectiveness of International Public Sector Accounting Standards Adoption on Preparation of Financial Statements

Abstract

vi 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