nternational Financial Reporting Standards (IFRS) Implementation and Financial
Statement Figures of Listed Entities in Nigeria

Ogechi Eberechi Alpheaus 1 , John Uzoma Ihendinihu 2
Department of Accounting,
College of Management Sciences,
Michael Okpara University of Agriculture, Umudike
1 alpheausogechieberechi@gmail.com,
2 ihendinihu.john@gmail.com

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 implementation level on eighteen (18) IAS/IFRS standards based on content analysis
of the financial statements of twenty-one (21) purposively 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 reveal 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, Return on Assets, Net Income, Earnings
Per Share, Total Assets, Book Value of Equities, Property, Plant and Equipment

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