Impact of Relevance Laws in Enhancing Financial Reporting in Public Sector

Publication Date : 15/01/2020

Author(s) :

Ohonba, Osamwonyi Ernest.

Volume/Issue :

Volume 1

Issue 1

(01 - 2020)

Abstract :

The importance of corporate financial reporting in the public sector cannot be overemphasized. The implementation of relevant laws in enhancing corporate financial reporting poses great challenges to accountants in all public sector organizations; most especially Government Ministries, Departments and Agencies (MDA’s). Although, there are several laws, but this paper concentrates on the legal framework for public financial management in Nigeria, such as The Nigeria Constitution of 1999, The Finance Control and Management Act 1958, Fiscal Responsibility Act (FRA) 2007, Public Procurement Act (PPA)- 2007, The Financial Regulations, Treasury Circular, and Reform in public Financial Management in Nigeria; such as the use of cash basis IPSAS’s in preparing its financial statements, IFRS’s for government parastatals and Government Business Enterprises; as they all improve the quality of general purpose financial reporting by public sector entities, thereby increasing transparency and accountability. This paper is theoretical. The paper concludes that, the implementation of relevant laws is challenging, but surmountable especially in the aspect of financial reporting. Relevant laws will enhance corporate financial responsibility in the public sector positively. It will make the keeping of records in the public sector easy and more accurate. The paper recommends that managers of government business entities and other nonprofit making organizations should adhere critically to the relevant laws disclosed in the reporting framework of IPSAS in Nigeria.