INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IMPLEMENTATION AND FINANCIAL STATEMENT FIGURES OF LISTED ENTITIES IN NIGERIA

INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS)
IMPLEMENTATION AND
FINANCIAL STATEMENT
FIGURES OF LISTED ENTITES IN
NIGERIA
Ogechi Eberechi Alpheaus 1 & John Uzoma
Ihendinihu 2
Department of Accounting,
College of Management Sciences,
Michael Okpara University of Agriculture,
Umudike
ABSTRACT
The paper evaluates the level of IFRS
implementation by listed entities across
different economic sectors in Nigeria and the
effect of the adoption on published financial
statement figures. An IFRS implementation
Disclosure
Checklist
was
constructed,
validated and used to score the
1
Alpheausogechieberechi@gmail.com,
2
ihendinihu.john@gmail.com
Accounting and Finance Research Association
implementation level on eighteen (18) IFRSs
based on content analysis of twenty-one (21)
judgmentally selected listed entities from ten
(10 sectors in the Nigerian economy from
2012 to 2018. Paired sample financial
statement figures prepared based on the
Nigerian Generally Accepted Accounting
Principles
(NGAAP)
and
IFRS-restated
equivalents for the year preceding the year of
IFRS adoption were obtained, compared and
tested for significant differences. Results
indicate high average level of IFRS
implementation (of 0.817) across economic
sectors in Nigeria; with the financial services
sector recording the highest index of 0.925
while the Agricultural sector had the least
compliance index of 0.658. The paired samples
t-test results reveals significant mean
differences between NGAAP-based and IFRS-
restated financial statement figures on Return
on Assets (ROA) and Net Income (NI), whereas
the mean differences in Earnings Per Share
(EPS), Total Assets (TA), Book Value of Equities
(BVE), and Property, Plant and Equipment
(PPE) were not statistically significant. The
paper concludes that the level of IFRS
adoption is generally high across the sectors
and that observable differences between
NGAAP-based and IFRS-restated financial
statement figures are not uniform but varied
with accounting figures. The paper therefore
recommends that government and financial
reporting regulators should strengthen
compliance
through
capacity
building
opportunities, setting implementation targets
and granting fiscal and other compliance
incentives to encourage entities across all
sectors to improve and sustain high
compliance to set financial reporting
standards to enhance their attractiveness at
the global investment market.
Keywords: IFRS Implementation Index,
NGAAP, Financial Statement figures,
Return on Assets, Net Income, Earnings Per
Share, Total Assets, Book Value of Equities,
Property, Plant and Equipment

Leave a Reply

Your email address will not be published. Required fields are marked *