In recent time the Nigerian government has joined other middle eastern countries who have recognized the need to participate in the opportunities offered by globalization and accordingly has led the way for the adoption of the International Financial Reporting Standards (IFRS). This research reviewed the relevance and the journey so far of the IFRS in Nigeria. The research design of the study is the survey method. The population studied was made up of listed companies, individual investors and financial analyst. The collected data were analysd using the chi-square test. The study shows that IFRS is relevant to the development of the Nigeria economy. However, the level of compliance with the IFRS by listed companies in Nigeria is relatively low. Therefore, the government of Nigeria should ensure full compliance with the IFRS especially by listed companies through the financial reporting council of Nigeria.
TABLE OF CONTENTS
Table of Contents
Chapter One: Introduction
Chapter Two: Review of Related Literature
2.2 Accounting Information and Decision Making
2.3 History of International Financial Reporting Standard
2.6 Overview of the Nigerian Economy
2.7 Why Nigeria Decide to Adopt IFRS
2.8 The Road Map for the Adoption of IFRS in Nigeria
Chapter Three: Research Method and Design
3.2 Research Design
3.3 Description of Population of the Study
3.6 Sources of Data Collection
3.7 Method of Data Presentation
3.8 Method of Data Analysis
Chapter Four: Data Presentation, Analysis and Hypothesis Testing
4.2 Presentation of Data
4.3 Data Analysis
4.4 Hypotheses Testing
Chapter Five: Summary of Findings, Conclusion and Recommendations
Background to the Study
Anthony (2011) inserted that before the financial crisis, there was a desire to create high quality, transparent and comparable information in general purpose of financial statement around the world. The idea has gained even more momentum after the financial crisis. As part of this effort, there is a push for the development of a single set of high quality, globally accepted accounting standards. This started in 1973 when the International Accounting Standard Committee (IASC) was formed by 16 professional accounting bodies from Canada, United State of America, United Kingdom, Germany, France, Netherlands, Australia, Mexico and Japan. The IASC was reorganized into the International Accounting Standard Board in 2001. To date, the IASB has developed accounting standards and related interpretations that are known as the International Financial Reporting Standard (IFRS) and IFRIC respectively.
Anthony (2011), International Financial Reporting Standard (IFRS) is a global agenda to foster common benchmark in financial information across international borders with the aim of generating momentum for economic development. The first IFRS was issued in 2003 by which time at least 19 countries required compliance with the international standard. Since then nearly 70 countries (including EU countries) have mandated IFRS for all listed companies. Further about 23 countries have either mandated IFRS for some listed companies or allow listed companies to voluntary adopt IFRS. However, as at 2011, more than 120 countries continue domestically to develop accounting standard based on IFRS, and this list include some large economies like Brazil, Canada, China, Japan, Indian and the US. Other countries like Argentina, Indonesia, Japan Mexico, Russia, adopted the IFRS.
This study seeks to emphasize on the importance of IFRS to the unification of accounting standards all over the world and the need for all stakeholders, practicing accountants, accounting students and investors in Nigeria to be fully acquainted with relevant international accounting standards.
Statement of Problem
Although many countries have faced challenges in their decisions to adopt IFRS, its wide spread adoption has been promoted by the argument that the benefits outweigh the costs. Recently there has been a push towards the adoption of IFRS developed and issued by the International Accounting Standards Board (IASB). The organizations should enable regulators and other key player to gauge the effectiveness of the financial reporting system in place such as training and development for practitioners and new members, due diligence for Accounting standards and the overall institutional and professional organization conducive for effective standards application.
Therefore, implementation of IFRS would reduce information irregularity and strengthens the communication like between all shareholders and also reduces the cost of preparing different version of financial statements where an organization is a multi-national.
The following are the research questions:
Objectives of the Study
The following objectives of the study are to:
Statement of Hypotheses
Ho: There is no significant relationship between the effect of IFRS in the preparation and presentation of companies’ financial statement and investment decision making in Nigeria.
HI: There is a significant relationship between the effect of IFRS in the preparation and presentation of companies’ financial statement and investment decision making in Nigeria.
Ho: There is no significant relationship between the effect of IFRS and increase in the performance of business organizations.
HI: There is a significant relationship between the effect of IFRS and increase in the performance of business organizations.
Ho: There is no significant relationship between the effect of IFRS on the quality of organization’s financial statement and investment decision making in Nigeria.
HI: There is a significant relationship between the effect of IFRS on the quality of organization’s financial statement and investment decision making in Nigeria.
Significance of the Study
The importance of this study cannot be over-emphasized. This study examine the effect of IFRS – based financial statement on investment decision making, using a case study of First Bank of Nigeria Plc. It will also help to increase the awareness of the application of IFRS in Nigeria among accounting students in higher institutions of learning in Nigeria, who may come across it in one way or the other.
Finally, this study will in clear terms present the effect of adopting IFRS to financial institutions, companies investors and stakeholders.
Scope of the Study
This research work will cover across section of staff and customers of First Bank of Nigeria Plc. It covers a time frame of 5 years i.e. 2010 to 2015.
Limitations of the Study
Many factors worked against having a perfect result or an exhaustive study of this topic as regards efficient collection of information for the research work. The major limitation of this study lies in its scope. It would have been desirous for the researcher to cut across the country but due to time and financial constraints, it has been restricted to staff and customers of First Bank of Nigeria Plc.
Another outstanding constraint is the unwillingness on the part of the respondents to give correct and convincing information due to fear of information being disclosed by competitors and time taken to supply needed information.
Definition of Terms
International Financial Reporting Standard (IFRS): It is a set of standard developed and issued by the International Accounting Standard Board (IASB).
OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS