The adoption of international public sector accounting standards (IPSAS): a comparative study between Nigeria and Malaysia

This study examines the adoption of International Public Sector Accounting Standards (IPSAS) in Nigeria and Malaysia by comparing their historical, socio-political, and economic contexts. Globalization necessitates uniform financial reporting in the public sector, and IPSAS offers a framework to enhance the accountability, transparency, and comparability of financial statements. The study employs secondary data by examining government publications, scholarly literature, and international norms. It identifies the primary reasons for the adoption of IPSAS in both nations, including international demands for financial transparency and governance changes, as well as the principal reasons for its non-adoption, such as technical challenges and stakeholder opposition. By clarifying these factors, the study offers valuable insights to other nations considering similar changes regarding effective strategies and best practices. Nigeria and Malaysia employ distinct approaches to adopting IPSAS due to their divergent governance structures, institutional frameworks, and public sector reforms. Nigeria implemented IPSAS in 2014 as a component of a broader financial management reform; nevertheless, challenges such as corruption, institutional opposition, and inadequate infrastructure have impeded its execution. Conversely, Malaysia has had a more seamless transition to IPSAS due to its proactive strategy, robust governance frameworks, and emphasis on public sector modernization. Findings of this study indicate the significance of historical and institutional factors in influencing the adoption of IPSAS. The study contributes to the field of public sector accounting by demonstrating the significance of contextual analysis in the adoption of international standards. The consequences are significant for policymakers, public accountants, and international organizations seeking to enhance accountability and financial reporting across various socio-economic contexts.