Abstract:
This study examined the impact of adoption of IPSASs on General Purpose Financial Statements (GPFS) of Local Governments/Local Council Development Areas (LCDAs) in Lagos State. The secondary data were used and collected from 20 Local Governments and 37 Local Council Development Areas in Lagos State. The International Public Sector Accounting Standards Manual and Annual Statutory Reports of the Auditor General for Local Governments were also reviewed to aid the proper appreciation and better understanding of the project. The following are the summary of major findings of this research: The data for the study is a cross sectional data from 2016 to 2018. The data for each year was analyzed including the post estimation test of the model. The data for each year was tested in line with the first, second and third objectives of the study. The results of the findings for year 2016 shows that inventory and accounts receivable have coefficient figure of -69.69 and -2.66 respectively, implying that these two variables are inversely related with General Purpose Financial Statements (GPFSs). Statutory transfers (allocations), Inventory, non-current assets and accounts payable have positive coefficient values of 0.12, 1.05 and 2.29 respectively. By implication inventory, non-current assets and accounts payable have positive and strong influence on General Purpose Financial Statements of all the Local Governments and Local Council Development Areas. Among all the IPSAS Accrual indicators adopted for this study only non-current assets has a significant effect on financial position management for the year 2016. The outcomes of the analysis on 2017 data series reveal that statutory transfers (allocations), non-current assets and accounts payable have positive coefficient values, suggesting positive relationship between these variables and General Purpose Financial Statements, this relationship is only significant for non-current asset and financial position management. The last test conducted on 2018 data indicate that the statutory transfers (allocations) and non-current assets have positive coefficients that is to say they are positive determinant of General Purpose Financial Statements. Also, non-current asset has a strong and significant effect on financial position management. In conclusion, the researcher recommends the following to the State Government: It is recommended that the Local Governments/Local Council Development Areas should continual adopting the international public sector accounting standards (IPSAS ACCRUAL) since some of its factors have strong, positive and significant impact on General Purpose Financial Statements (GPFSs). Lastly, the researcher recommended that Local Governments/Local Council Development Areas should adopt more sophistical techniques/accounting software that will improve the production of its General Purpose Financial Statements (GPFSs).
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