The Level of Compliance to the Accrual-Based IPSAS: Evidence in the Local Government of Ghana

This study aims to analyze the compliance level of Ghana’s local government financial statements prepared and disclosed following the accrual-based International Public Sector Accounting Standards. The IPSAS compliance level of 260 local government sector entities in Ghana is evaluated for the 2019–2021 period using the 255-item IPSAS-based disclosure checklist. Results indicate that, for the years 2019 through 2021, Ghana’s overall levels of adherence to the IPSAS are inadequate. Moreover, there was a downward trend in the scores which reveals eminent flaws in compliance with IPSAS. IPSAS 2 recorded the lowest compliance score of 48.57% while IPSAS 14 obtained 100% compliance for all the periods. Some of the reasons that could explain the differences are difficulties in meeting the statutory deadlines for the presentation of financial statements, the lack of adequate training for information preparers, or perhaps the absence of sufficient information systems and adequate accounting software. This study contributes to the debate among scholars, investigators, professionals, standard-setters, and decision-makers in government interested in the compliance of national standards to the accrual-based IPSAS, particularly in the context of local governments in emerging economies.