Research Article Published 1 December 2012

Efforts and challenges in adopting international financial reporting standards (IFRS) in Nigeria

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How to Cite

Alkali, M. Y., & Lode, N. A. (2012). Efforts and challenges in adopting international financial reporting standards (IFRS) in Nigeria. Journal of Business Management and Accounting, 2(2), 81-99. https://doi.org/10.32890/jbma2012.2.2.8678
Muhammad Yusuf Alkali
Waziri Umaru Federal Polytechnic Nigeria, Nigeria
Nor Asma Lode
School of Accountancy, College of Business, Universiti Utara Malaysia, Malaysia
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Article

Abstract
Financial reporting in emerging and developed economies has been a challenging
debate, due to the frequent changes as well as updates on accounting rules and
regulations. Nigeria, being an emerging economy has witnessed a dramatic change
and improvement on the accounting reporting since after political development of
the country in 1960. The establishment of Nigerian Security Exchange (NSE) in 1982
and the establishment of Nigerian Accounting Standard Board (NASB) in 1984 by the
Institute
of Chartered Accounting of Nigeria (ICAN) who were the pioneer legislations
on the road map to financial reporting in Nigeria. Even though laws and regulations
were also issued by the regulatory bodies in Nigeria to ensure quality(value relevance)
financia
l reporting, the level of compliance with the regulations have been very low
as reported by the World Bank in the 2004 and 2011(ROSC report). Subsequently,
professionals, regulatory bodies and government made the first effort by establishing
the road map a
nd the World Bank committee for the adoption of the International
Financial Reporting Standards (IFRS) in 2010. Secondly, the formation of the Financial
Reporting Council (FRC) in 2011 and FRC training institute in 2012. However, these
efforts by the gover
nment, World Bank and regulators were faced with the challenges on
the development of regulatory and legal framework as well as training of professionals
and regulators on the new accounting standard (IFRS). Therefore, this paper explores
two main issues:
(i) the efforts of government, professional bodies, and regulatory
agencies by providing accounting framework and trainings; and (ii) challenges in
adopting IFRS due to weaknesses of SAS and unethical behaviours of the preparers of
financial statements.
Keywords
SAS IFRS financial reporting and Nigeria

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Identifiers
DOI · 10.32890/jbma2012.2.2.8678
OpenAlex · W223454745

References

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