PUBLIC SECTOR ACCOUNTING STANDARDS AND QUALITY OF FINANCIAL REPORTING IN LOCAL ADMINISTRATIVE ENTITIES. CASE STUDY: KAMONYI DISTRICT PERIOD OF THE STUDY: 2021-2023

Abstract

This study investigated adoption of international public sector accounting standards and quality of financial reporting in Rwanda for the period of 2013-2023. Primary data were extracted from respondents of public institutions in Kamonyi district of Rwanda. The data was coded and quantified. The study adopted a cross sectional correlation and survey designs and employed both quantitative and qualitative approaches, a census sampling technique and robust regression model. The population size was 106 and a sample size of 106. The study adopted four independent variables as revenue recognition adoption, depreciation measurement adoption, Lease classification and asset classification. The study revealed that Revenue recognition has negative and statistically not significant; Depreciation measurement adoption has positive and statistically not significant; Asset classification standard estimate has negative and statistically not significant; and Lease classification adoption has positive and statistically significant impact on quality of financial report in Kamonyi district of Rwanda. Based on the findings, the study concluded that the adoption impacted quality of IPSAS but not significantly. Accordingly, this study recommends that revenue recognition standard adoption of IPSAS should be hyped in order for more operators to adopt and embraces it. The sponsored Depreciation measurement method by IPSAS should be sustained. Persistent education on Asset classification standard should be sustained if its adoption significantly affected quality financial report; and the lease classification in the IPSAS should be maintained. This study recommends that further studies could be undertaken to cover other districts within Rwanda. This provide a more elaborate generalization of research outcomes in relation to issues under discourse which this is unable to capture.