Abstract:
The study examined International Public Sector Accounting Standards (IPSAS)
compliance at the local government level in Ghana using selected Metropolitan,
Municipal and District assemblies. A descriptive survey design was employed
where primary data was gathered. Both descriptive and inferential statistics
were used to analyse data. Though the analysis found a very high compliance
rate with various components of IPSAS in terms of the presentation of financial
statements and comparative information, the overall compliance rate was very
low at 18.18%. The results observed that the Assemblies complied very often
with the minor components of the presentation of financial performance and
cash flow; than those of financial position and notes on financial to the account.
The Municipal and Metropolitan Assemblies were found to comply more with
the statement of financial performance, statement of financial position and
statement of cash flows than the District Assemblies. Further analysis revealed
that implementers' level of education and years of working experience
significantly explain their views about the Cash Basis System of reporting in
Ghana. It was further estimated that implementers’ perceived usefulness of
IPSAS is statistically dependent on the perceived complexity of the standards,
perceived operational benefits, perception of the cash basis system and the
gender of the implementers. An inverse relationship was observed between the
perceived level of IPSAS complexity and the perceived usefulness of IPSAS.
The Ministry of Local Government needs to prioritize the presentation of
financial statements at the assembly level by insisting on a uniform standard for
all as stipulated by the IPSAS standards.
