Key Features:

No of Chapters: 5 Chapters
No of Pages: 95
Methodology: Chi Square

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Abstract:

This study examined and assesses post implementation challenges of IFRS in Nigeria banking industry, Provide measures for ameliorating the challenges confronting implementation of IFRS. Specifically, this study is designed to: to examine whether the International Financial Reporting Standards (IFRS) in Nigeria has improved the quality of financial reporting in Nigerian banks, to find out role the of IFRS play in banking institutions in Nigeria, to determine whether IFRS adoption and implementation has been made positive impact in Nigeria.

For the purpose of this study a research design was adopted by which questionnaires are designed and administered to employees of randomly selected banks in Nigeria. The data collected were presented in percentages, presented in tables and analysed using “Chi-Square test of independence” to test the relationship between the variables in the hypothesis.

The finding of this study are To achieve this ultimate goal, the study revealed that: IFRS aid quality financial statement in the Nigeria banking industry, IFRS improve the quality of financial reporting in the Nigeria banks, IFRS play a very significant role in the banking institution in Nigeria, IFRS and quality financial reporting has strengthen the international labor market, IFRS and quality financial reporting has improve calculation of tax liabilities.

Introduction:

International Financial Reporting Standard (IFRS) are designed as a global language for business affairs to enhance understanding and comparability across international boundaries. Most countries of the world have various national standard which differs according to there environmental peculiarity. As a result of global international trade, a set of globally acceptable accounting standard is desirable (Ball 2006). IFRS is a single set of high quality, globally accepted accounting standard that enhances comparability of financial reporting across the globe, which could result in better investment decision and optimal allocation of resources across the global economy (Jacob and Madu, 2009).

The drive behind adoption of IFRS in Nigerian banks is to harmonize financial reporting across the globe especially in banks with international branches smooth transition, including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. IFRS formally known as IAS was first issue in 1973 by International Accounting Standard Committee. In 2003, the first IFRS was issued. Given the numerous benefits of IFRS, which span beyond harmonization and easy comparability of financial reports of organization across the globe, the Nigerian corporate environment embraced it adoption since January 2012 to unite with the global need for it adoption, this transition needed to be carefully executed in a logical manner to ensure smooth, transparent and truthful compliance. It must be stressed that the transition process till this moment involves key stakeholders such as educators, professional bodies, preparers, users, regulators and auditors. The ability to identify the challenges and how to address such challenges has ensured smooth transition and adoption.
This led to transition from the local standard (SAS) to IFRS, The primary objective of the accounting standards is to enable corporations to provide investors and creditors with relevant, reliable and timely information which is in line with the IASB’s accounting framework for the preparation and presentation of Financial Statements. Such information, it is argued, contributes towards the achievement of orderly capital markets around the world Imhoff (2003:117).

1.2 Statement of Research Problem
The practical challenges in Nigeria as a result of implementing IFRS are to be identified and addressed in order to benefit fully from the introduction of IFRS. These challenges have been identified by previous studies conducted by scholars such as: (Alp and Ustundag, 2009): potential knowledge shortfall, (Li and Meeks, 2006): legal system effect, (Shleifer and Vishny, 2003): tax system effect, (Irvine and Lucas, 2006): education and training, (Martins, 2011): enforcement and compliance mechanism.

In spite the opportunities from the adoption of International Financial Reporting Standard by most countries, the procedure for adoption suffers a set back in Nigeria. These include; cost implication suffered by the users of IFRS, technicality in the method and strategy for adoption, inadequate capacity building for transition, all of which reflected the low level of preparedness by government and users of the standard for smooth transition. Nigeria embraced IFRS in order to participate in the benefits it offers, including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. In implementing IFRS, Nigeria is confronted with challenges including the development of a legal and regulatory framework, awareness campaign, and training of personnel.