ABSTRACT
As the forces of globalization prompt more and more countries to open their doors to foreign investments and as businesses expand across borders, this has led to recognition of the benefits of having a commonly understood financial reporting framework supported by strong global accepted accounting standards. The circumstances that necessitated this recognition arose out of the need for reliability, in respect of financial information being disclosed in the published financial statement of various enterprises in various countries. The adoption of IFRS has therefore become an issue of global relevance. The research project investigated the effect of International Financial Reporting Standards (IFRS) in the delivery of reliable accounting information. The problem has always been the need for accounting standards that would cut across borders. Thus, boosting the reliability of local accounting information as well as the confidence of local financial information users and foreign investors alike. Primary data was sourced by the researcher through the distribution of a well drafted 52 questionnaires. Simple regression and Pearson product moment correlation were used as analytical technique to test the relationship between the variables. The variables considered in the study are IFRS and delivery of reliable accounting information. After the study it was concluded that Accounting information serve their purpose better only when they are prepared in compliance with the relevant standards. Also the study established that the existence of two different accounting systems is problematic for both companies and investors and also that Investors cannot readily compare the accounting information in different countries. Furthermore, the study stated that the need to prepare multiple set of accounting information is costly and administratively burdensome. Based on the above the study recommends that Top management, external auditors and regulators being the key players in standards, need to work together and tighten compliance so that impact of IFRS could be felt more.
TABLE OF CONTENTS
Title page i
Declarationii
Certification iii
Dedication iv
Acknowledgmentsv
List of tablesix
Abstractx
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of Problem 5
1.3 Objectives of the Study 6
1.4 Research Questions 7
1.5 Statement of Hypotheses 7
1.6 Significance of the Study 8
1.7 Scope of the Study 9
1.8 Limitations of the Study 10
1.9 Definition of Terms 11
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 14
2.1.1 Definition of Accounting15
2.1.2 Concept of Accounting Information 17
2.1.3 Concept of reliable of Accounting Information 18
2.1.4Importance of Reliable Accounting Information21
2.1.5The Effects of IFRS in the Delivery of Reliable
Accounting Information to users. 22
2.2Theoretical Framework 24
2.2.1Accounting Standard24
2.2.2International Accounting Standards 25
2.2.3Theoretical Framework of Financial Statement 26
2.2.4The Role of the Framework 27
2.2.5The Scope of the Framework28
2.2.6Qualitative Characteristics of Financial Statement 28
2.2.7Element of Financial Statements (IAS 1 ARTICLE 10) 29
2.2.8Recognition of Elements of Financial Statements30
2.2.9Measurement of the Elements of Financial Statements31
2.2.9 Effects of IAS on the preparation of Financial Statements of
Banks and similar Financial Institution 33
2.2.11Accounting Policies Applicable in Banks 34
2.2.12 Requirements of IFRS 38
2.2.13 Adoption of IFRS 39
2.2.14 The roadmap for transition to IFRS 41
2.2.15Roadmap to IFRS conversion in Nigeria 43
2.2.16 Statement of Adoption 44
2.2.17List of issued IFRS and IAS 47
2.2.18Benefits of IFRS Adoption 52
2.2.19 Challenges of IFRS Adoption 55
3.1 Empirical Review 60
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design62
3.2 Population to the Study62
3.3 Area of the Study 63
3.4 Sample size and sample Techniques 63
3.5 Sources of data and data collection Method 65
3.6 Validity and reliability of Instrument 66
3.7 Model Specification 66
3.8 Data analysis Technique 68
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Data Presentation69
4.2 Test of hypotheses84
4.3 Discussion of Findings89
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings91
5.2 Conclusion93
5.3 Recommendations93
References
Appendices
LIST OF TABLES
4.1 Distribution of questionnaire and response rate 69
4.1.1 Distribution of respondents according to branch office 70
4.1.2 Distribution of respondents according to department 70
4.1.3 Distribution of respondents according to year of banking experience 71
4.1.4 Distribution of respondents according to level of position72
4.1.5 Distribution of respondents according to highestqualification 73
4.1.6 Distribution of respondents according to gender 74
4.1.7 Question 1 75
4.1.8 Question 276
4.1.9 Question 377
4.1.10 Question 4 78
4.1.11 Question 5 79
4.1.12 Question 6 80
4.1.13 Question 781
4.1.14 Question 8 82
4.1.15 Question 9 83
4.2.1 Model summary 84
4.2.2 ANOVA 85
4.2.3 Coefficient 86
