Accrual-Based International Public Sector Accounting Standards: Implementation Challenges Facing the Metropolitan, Municipal and District Assemblies in the Ashanti Region of Ghana

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. Municipal, Metropolitan and District Assemblies (MMDAs) are not let off in this instance. The move to new reporting standards results in numerous challenges for diverse interest groups such accounting practitioners. The main objective of the study was to establish the AIPSAS implementation challenges facing MMDAs in the Ashanti region of Ghana. This quantitative study was conducted to gravely study the factors that could influence the implementation of AIPSAS. Purposive sampling procedure was used to select the departments whilst convenience sampling procedure was also used to select the sample size. A sample of 480 accounting practitioners was selected from all the 30 MMDAs in the Ashanti region of Ghana. Self administered questionnaire was used to gather data from the respondents. The Pearson correlation and multiple linear regression analysis were used to test the significance level of the AIPSAS implementation factors. The results of the hypotheses tested revealed that with the exception of cultural practices, the level of accounting education and training, different levels of costs and the existing laws have significant effects on the implementation of AIPSAS in the MMDAs in the Ashanti region of Ghana.