Lagos — Stakeholders in the financial sector have called for the adoption of the International Public Sector Accounting Standards (IPSAS) by all tiers of governments in Nigeria so as to be able to meet up with global best practices in the sector.

The financial experts made the call at a four-day training workshop on the need for IPSAS adoption among functionaries of local governments, organized by the office of Auditor-General for Local Governments in Lagos State and Institute of Chartered Accountants of Nigeria (ICAN) in Lagos.

Lagos State Auditor-General for Local Governments, M.M Hassan said adoption of IPSAS accounting method has become imperative as the traditional "cash basis" method is no longer in vogue in international accounting sector.

"Since 2001, there has been a global move towards IFRS/IPSAS adoption and indeed in over 120 nations across the globe. Many other countries still outside the IFRS/IPSAS dragnet have indeed set the timelines for convergence with or adoption of IPSAS and Nigeria is not an exception to this. Thus this new mode of accounting is fast becoming the globally accepted accounting framework as it is," Hassan who was represented by M.O Jimoh, said.

ICAN President, Adedoyin Owolabi said aside that IPSAS has become a global phenomenon, it is also a potent tool to check corruption and misappropriation of public funds in the public sector.

"It is the quest for transparency in governance that has necessitated the call for the preparation of financial reports by all tiers of government with IPSAS. Expectedly, IPSAS would help check a major defect of the cash basis of financial reporting particularly as it relates to the smooth tracking of assets created with public funds," the ICAN president said.