THE EFFECTS OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS) IMPLEMENTATION ON THE PERCEIVED QUALITY OF FINANCIAL STATEMENTS

Abstract

his study aimed to examine the perceived quality of financial statements following the adoption of International Public Sector Accounting Standards (IPSAS) at the National Sugar Institute, located in Kilosa, Morogoro, Tanzania. A qualitative research design was employed, utilizing a sample of 15 participants selected through purposive sampling. Data were collected through semi-structured interviews and documentary reviews and analyzed using thematic analysis. The study found that IPSAS implementation at the National Sugar Institute enhanced financial statements' relevance, transparency, and comparability, improving decision-making. However, challenges remain in risk reporting, contingent liabilities, and complex transactions, necessitating ongoing training and refinements. The study concludes that IPSAS adoption at the National Sugar Institute has significantly improved the relevance, transparency, and comparability of financial statements, making them more useful for decision-making. However, challenges remain in areas like risk reporting, contingent liabilities, and subjective financial estimates, requiring further improvements and ongoing training. Additionally, managing complex financial transactions during the transition to IPSAS poses difficulties, highlighting the need for continuous support and refinement of the standards. Based on these findings, the study recommends further capacity-building efforts, particularly in the areas of complex financial decision-making, and suggests that policymakers focus on developing policies to promote consistent IPSAS adoption. The study also recommends management invest in analytical tools and training programs to support the implementation of IPSAS and improve financial reporting practices. Further research should explore the long-term effects of IPSAS adoption and address challenges related to complex financial scenarios.