Abstract:

In recent times, the significance of Accrual-based Public Sector Accounting Standards (AIPSAS) in financial reporting is gaining momentum and current debates are moving in the trend of full AIPSAS reporting. The move to new reporting standards results in numerous challenges. The main objective of this study was to ascertain the factors affecting the implementation of Accrual-Based International Public Sector Accounting Standards (AIPSAS) in the Municipal, Metropolitan and District Assemblies (MMDAs) in the Ashanti Region of Ghana. A questionnaire which was quantitative in nature was used to collect the data from the respondents. Purposive and simple random sampling techniques were used to select 480 accounting practitioners. Pearson regression analysis was used to analyse the results. The study showed that there is a significant positive relationship between level of accounting education and training and the implementation of AIPSAS with a regression coefficient of 0.295, and P-value of 0.000. There is also a significant positive relationship between different levels of costs and implementation of AIPSAS with a regression coefficient of 0.627, and P-value of 0.000.It could be concluded that the level of accounting education and training and the different level of costs affect the implementation of AIPSAS in the Ashanti Region of Ghana. Therefore, the study recommends improving capacity building through training and education and establishment of strong financial reporting standards’ enforcement body. The study again recommends inclusion of IPSAS in the academic curricula, inclusion of IPSAS implementation fund in the District Assemblies Common Fund (DACF).

Keywords: Accrual-Based International Public Sector Accounting Standards, Implementation, Challenges, Accounting Education and Training, Costs.

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