Inflation - Adjusted Accounting and Corporate Value Redefinition: Fixing Nigeria Investors’ Challenge

  • CO Maxwell
  • PUC Agundu
Keywords: Booksø looks, financial analysis, Inflation Accounting, Nigerian investors


In many countries, including Nigeria, the historical concept is adopted in the recording of financial transactions. Convenient as this approach  suggests, in times of generally rising prices, the purchasing power eroding effect of inflation is over-looked. This ought not to be so, considering the tendency to speculate pseudo-values which eventually undermine corporate competitiveness. This paper, therefore, addresses the twisty advocacy and seeming intricacy of Inflation-Adjusted Accounting Systems (IAAS), with a view to illuminating the translational hurdles. The results abundantly necessitate the expeditious consolidation of a more robust framework to fix impending inhibitors such as lack of awareness, inaccessibility of  relevant standard indices, resistance to change, and absence of  professional pronouncement by the Nigerian Accounting Standards Board (NASB). Nigeria and other developing/emerging economies should do well to domesticate value-driven financial reporting systems in line with global best practices, to reinvent corporate governance and boost competitive advantage.

Key Words: Books' looks, financial analysis, Inflation Accounting, Nigerian investors


Journal Identifiers

eISSN: 2227-5452
print ISSN: 2225-8590