The Effects of the Adoption of International Public Sector Accounting Standards on The Quality If Financial Reporting in Central Government: a case of Ministry of Local Government Public Works, Rural Development and National Housing
The purpose of this study was to examine the effect of the adoption of International Public Sector accounting standards on the quality of financial reporting in central government. The research also looked at the existing cash basis system of accounting and compared it to the IPSAS based standards which are accrual based. The study used quantitative methodology with self-administered questionnaires to obtain data from employees of the Ministry of Local Government, Public Works, Rural Development and National Housing. Structures interviews were also used to determine the relationship between International Public Sector Accounting Standards and the quality of financial reporting bodies and also success stories were examined. A predominantly review approach was also implemented and therefore major publication and documentary materials from accounting from accounting professional bodies were used. The results indicated that international public sector accounting standards have a positive effective on the quality of financial reporting. The findings of this research imply that the Ministry of Local Government, Public Works, Rural Development and National Housing needs to implement public sector accounting standards accounting standards in preparation of its financial reports so as to improve their quality.