APPLICATION AND CHALLENGES OF INTERNATIONAL FINANCIAL REPORTING STANDARDS IN NIGERIA (original) (raw)
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This paper investigates the impediments to IFRS adoption in Nigeria. It examines the attitudes of key stakeholders towards IFRS adoption. The sample is drawn from academics and practitioners who are critical stakeholders in the success or failure of IFRS implementation. The results of the study overwhelmingly evidence that Nigeria was not prepared to adopt IFRS, even to date. The study finds the two major roadblocks to IFRS adoption as (i) lack of education, understanding and experience by preparers of financial reports with the use of IFRS; and (ii) lack of coverage of IFRS in contemporary accounting curricula. An important policy implication is the urgency of accounting curriculum review in the tertiary education system to incorporate IFRS and IPSAS and their implementation dimensions. Failure to both integrate IFRS modules into Nigeria's tertiary education accounting curricula and coordinate tertiary accounting education programmes two years after IFRS adoption exacerbates the implementation challenges and frictions associated with such tardiness.
2014
Although the adoption and implementation of International Financial Reporting Standards, IFRS, are receiving the serious attention of the Nigerian Government, efforts towards full transition from her local version of Generally Accepted Accounting Principle, GAAP, to IFRS are considered to be fraught with several challenges that appear to threaten the success of such efforts. This paper relies on extensive literature in identifying and discussing key IFRS enduring challenges and their implications on the success of Nigerian full transition to IFRS. The identified and discussed subsisting challenges include: the non-inclusion of IFRS in the curricula of Nigerian educational institutions, inadequate IFRS capacities by Nigerian auditors and accountants in and the non- amendment of Nigeria’s corporate financial reporting statutes to accommodate IFRS requirements. This paper recommends an extension of the transition period to allow for the fixing of the identified challenges if Nigeria is...
American Journal of Economics June 2012, Special Issue: 41-45, 2012
The Nigerian Accounting Standards Board (NASB) issued a timeline and a roadmap for the proper adoption of International Financial Reporting Standards (IFRS) by companies operating in the country. We really shed more light and detail assertions on the key issues raised by the government proposal, we proposed that the need for a globalised accounting standards or " externality" is highly overstated. A globalised and widely accepted accounting regulator is unlikely to help achieve the stated goals of comparability and consistency of financial reporting bearing in mind the nature and economic situation of the country. We posit that, Nigerian companies should be given the opportunity to choose the use of either Nigerian GAAP or IFRS rather than imposing one global monopoly set of standards that is designed to suit the need of developed countries. We concluded that, focus on auditing and investigation is very important which deserve the attention of all and sundry especially from the standards setting bodies if the aim of financial reporting will be realized in the future, for the absolute gains or benefits associated from the adoption of IFRS, which is a principle -based accounting standards are likely to be achieved only if auditors are principle -based in nature. We therefore recommend that, the federal government through the NASB or the SEC to re -consider the implications of its proposal to work hand in hand with the Federal ministry of education and the Nigerian professional bodies, such as Institute of Chartered Accountants of Nigeria, Nigerian College of Accountancy, Institute of Chartered Taxation of Nigeria etc, so that more attention will be accorded to educational judgments.
Journal of Policy and Development Studies, 2016
Corporate Financial Reporting is one of the petal issues in corporate financial existence. It provides an insight into the viability of a company's corporate existence. Corporate financial reporting is aided by proper auditing practices, hence the need to address the challenges facing the auditing practice such as lack of auditors independence. Ninety four copies of questionnaire were administered on branch managers, auditors, investors and financial analysts within Delta State but only 82 were retrieved. Likert attitudinal form ranging from 1-5scale was used. Pearson Product Moment Correlation Coefficient statistical tool and the t-test at 0.05 was adopted for the analysis. The paper discovered that there are significant differences between IFRS financial reports and those prepared under Nigeria Generally Accepted Accounting Principles (GAAP). The adoption of IFRS is a right set in the right direction. The study recommends that the Financial Reporting Council in Nigeria should be on the alert to the best international accounting practice (IFRS) to guide them in the establishment of highly improved practices in Nigeria.
The fast pace of globalization with integration of national financial markets has stimulated the need for a common financial language (IFRS) because good financial reporting makes investment and financial decisions more efficient. Nigeria adopted the IFRS in January 2012. This exploratory study examines the state of readiness of Nigerian academics (accounting lecturers and students) and practitioners (professional accountants and auditors) to embrace IFRS adoption. The study examined three research questions about: (i) the extent of IFRS familiarity by academics and practitioners; (ii) the state of readiness to embrace IFRS by academics and practitioners; and (iii) their perspectives regarding a proper national transition plan to IFRS adoption. The results showed significant differences between accounting students, lecturers and practitioners with respect to their degree of familiarity with IFRS. Respondents believed that Nigeria was not ready for IFRS adoption and were of the view that 'IFRS Course in Accounting Curriculum' is the best plan to transition Nigerian companies to IFRS, followed by 'IFRS training for management and staff'. An important policy implication of this study is the urgency of accounting curriculum review in our tertiary education institutions to incorporate IFRS and its implementation dimensions.
European Scientific Journal, 2014
The globalization of the world's economy and markets led companies and nations to become world global players. In addition, more investments take place on a global level. Before the adoption of International Financial Reporting Standards (IFRS), different countries developed their own national accounting standards or adopted that of other countries. However, movement of business toward a global economy brought challenges in comparability, objectivity, reliability, understandability among others. These issues have accelerated the need to move toward global accounting standards. Thus these challengesspelt the need for a single set of high quality and globally accepted accounting standards. Ghana and Nigeria are major trade partners and due to different timing of the adoption of IFRS, this research was conducted tocompare the IFRS adoption and implementation of these countries through a literature review. It was found that Ghana and Nigeriacommenced the adoption process in 2005 and 2010 respectively. It was revealed that, the national standards of Ghana and Nigeria were closely related and had both suffered lack of certain standards and disclosurerequirements. Besides, it was revealed that the IFRS'adoption and implementation demands a new set of skills and expertise, transitional challenges,dealing with inconsistencies in applicable laws, emerging technical areas and terminologies; also frequent reviews of standards, higher demand for auditors among others despites the benefits that came with it.This study recommends that, both Ghana and Nigeria should work on skills and expertise gap through training and development andto ensure that these standards are included in the academic and professional curricula. Moreover, regulatory bodies should monitor and
International Journal of Research Publications, 2020
To actualise accounting strategies regarding the way wherein the everyday money related exercises of a business substance are assembled, recorded and announced has encountered extensive advancement on the planet everywhere. In the meantime, the exercises of worldwide ventures and speculator conduct remain the point of convergence in the discussion on the requirement for a worldwide arrangement of accounting standards. This paper recognized the contrasts between Nigerian GAAP and US GAAP comparative with IFRS using a subjective methodology involving the investigation and examination of a wide scope of talks, the assessment of a writing survey from distributions, understudies papers, web sources, administrative-accounting bodies, and gathering procedures. It was revealed that the distinctions concerning the introduction of the money related instruments gave by an auxiliary in the parent's united fiscal reports could drive generously various outcomes. Along these lines, the study recommends that administrative bodies should uphold IFRS standards profoundly, looking for the neighbourhood content where important while giving convergence as opposed to adoption.
2014
In presenting this project paper in partial fulfillment of the requirements for a postgraduate degree from Universiti Utara Malaysia, I agree that the University Library may make it freely available for inspection. I further agree that permission for copying of this project paper in any manner, in whole or in part, for scholarly purpose may be granted by my supervisor or, in her absence by the Dean of Othman Yeop Abdullah Graduate School of Business. It is understood that any copying or publication or use of this project paper or parts thereof for financial gain shall not be allowed without my written permission. It is also understood that due recognition will be given to me and to Universiti Utara Malaysia for any scholarly use which may be made of any material from my project paper. Any
This study focused on the effects of financial accounting standards on financial reporting and practices of modern business organizations in Nigeria. It discussed extensively the objectives, impacts, approaches and processes leading to standard setting and financial reporting. It also discussed some arguments in favour and against financial accounting standards. The study looked at critical issues in standard setting as well as the application of accounting standards in financial reporting and practices. Both quantitative and qualitative survey methods were used to obtain relevant data for the study. These data were analyzed using Pearson's product moment correlation coefficient to test the relationship between accounting standards and financial reporting and practices of business organizations in Nigeria. The result showed a high and positive level of correlation. The chi-square statistical tool was also used to test the cost implication of adhering to accounting standards. The result showed that there is a significant level of cost associated with the application of financial accounting standards in financial reporting and practices. Suggestions were made that standard setter should state the limit to which the public contribute to the standard setting while looking at the peculiarities of individual enterprise as this will prevent the watering down of standards through the exposure draft. Finally, that Financial Accounting Standard Board should state the cost/benefit of adhering to financial standards in financial reporting particularly in terms of the disclosure of intangible assets as this will build the confidence of the financial reporters .and users of financial reports.
Effect of International Financial Reporting Standards on the Financial Statements of Nigerian Banks
International Financial Reporting Standards (IFRS) has become the new dominant set of accounting standards; however, the transition to the new standard was fairly disruptive for users of financial statements. Comparability and trend analyses was impaired as the differences between IFRS and local Generally Accepted Accounting Principles (GAAP) impact figures presented in financial statements and lead to variances in financial ratios computed under the two regimes. This study examines the effect of IFRS adoption in Nigeria on financial statement figures and key financial ratios of Nigerian Banks that adopted IFRS. The study likewise seeks to identify the sources of differences in financial reporting experienced by Banks due to the changes in the regime. Secondary sources of data were used. Least Squares Regression analysis was used to test the hypotheses formulated. The finding revealed that there is a significant effect of the adoption of IFRS on the financial statement of banks in Nigeria. Based on these findings, It was recommended that those involved in the analysis of financial statements are advised to accord attention to the trend analysis when comparing pre-adoption data under NGAAP (Nigerian GAAP) with post-adoption data in IFRS. The comparison of financial ratios under both NGAAP and IFRS for the comparative year prior to IFRS adoption may be seen as a prudent first step prior to undertaking a trend analysis of a particular company. It may also be prudent to rely on cash flows to avoid the subjectivity inherent to accounting adjustments. Being aware of the higher volatility of accounting figures under IFRS and understanding the main categories of adjustments affecting accounting figures and ratios in IFRS may likewise be important.