Browsing by Author "Suleiman, S. A. Aruwa"

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    INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION IN NIGERIA AND FINANCIAL REPORTING COMPARABILITY
    (Department of Accounting, Nasarawa State University, Keffi, 2015-08-20) Suleiman, S. A. Aruwa; Lawal, Lukman Ojedele
    The EU's adoption of IFRS in 2005, combined with the directives by the Ministry of Finance that Nigerian listed firms should adopt IFRS in 2012 signify a new dawn in financial reporting. In this context, the potential effects of IFRS adoption are not so clear. Our study of NON-financial listed firms focuses on the effects of the new standards on comparability of financial reporting in Nigeria. We address this objective by seeking significant differences between income, equity, assets and liabilities under the two regimes via Gray comparability index. This is possible because IFRS 1 requires first time adopters to provide reconciliation statements on the transition date. Data were sourced secondarily and analyse via Z-test. The result obtained reveals means index of 0.9643; 0.9359; 0.9405 and 0.9513 for income; equity; assets and liabilities respectively. The implication of these mean values is that Nigerian SAS is more conservative than IFRS across all variables.Also the test of significance revealed that there is significant difference between IFRS and SAS across all the variables. Conclusively it can be inferred that Nigerian companies were positively affected by the transition to IFRS. The study therefore recommends that appropriate authorities should ensure strict compliance with the adoption of IFRS.