An Analysis of the Expected Outcomes of Adoption of the International Financial Reporting Standards in Nigeria

  • CO Mgbame
  • CA Okafor
Keywords: IFRS, Harmonization, Convergence, Globalization.

Abstract

Unarguably, globalization has become a key driver of the increasing integration and synergy among countries, systems and standards. Consequently, the clamor for International convergence of accounting standards and the adoption of International Financial Reporting Standards (IFRS) is expected. The thrust of this paper therefore, was to examine the effects of adoption on selected variables which such as value relevance of accounting information amongst others. The study hypotheses were all stated in the null. An exploratory research design that involved extensive use of primary data obtained through questionnaires was used for the study. The chi-square non-parametric test was used in testing the study hypotheses. We found a positive relationship between IFRS adoption and improvements in the value relevance of accounting information in Nigeria. However, we suggest a critical evaluation of the level of compatibility of the Nigerian institutional factors against the specifications of IFRS to ascertain the cost-benefit implications.

Key words: IFRS, Harmonization, Convergence, Globalization.

Published
2013-12-05
Section
Articles

Journal Identifiers


eISSN:
print ISSN: 2141-4343