Implementation of the IFRS in Nigeria

CHAPTER ONE
INTRODUCTION
1.1 Background of the study
The globalization of capital markets is an irreversible process and the benefits associated with mutually recognized and prospected International Accounting Standards are enormous.
The earliest recognized standard setting body was the ‘Committee on Accounting Procedures (CAP)’which was formed in 1938 but the move towards developing an acceptable global financial reporting standards started in 1973 when the ‘International Accounting Standards Committee (IASC)’ was formed by professional accounting bodies from countries such as the United States of America, United Kingdom, France, Germany, Canada, Japan, Mexico, Netherlands and Australia.
The IASC was formed to formulate uniform and global accounting standards that are aimed at reducing to the barest minimum the discordances in international accounting principles and reporting practices. According to Ilaboya (2015) The IASC issued 41 International Accounting Standards (IAS) from IAS 1 (Presentation of Financial Statements) to IAS 41 (Agriculture).
Carlson (1997 as cited in Madawaki 2012) is of the opinion that the IASC was established and has actively been championing the uniformity and standardization of accounting principles for over two decades
On April 1st 2001, the IASC was replaced by International Accounting Standards Boards (IASB). The IASB adopted the 41 IAS as issued by the IASC and on its own, has issued 16 International Financial Reporting Standards (IFRS) with the latest being IFRS 16(Leases) issued in January 2016 but to take effect from January 1st 2019.
International Financial Reporting Standards (IFRS) according to Saudi & Umar (2014) are a set of accounting standards developed by the IASB that is becoming the global standard for the preparation and presentation of public company financial statement.
Most countries of the world are moving in the direction of International Financial Reporting Standards (IFRS). While some countries have been using these standards, they are new to transition economies like Nigeria. In Nigeria, implementation of IFRS was launched in September 2010. This brought into place the Financial Reporting Council of Nigeria (FRCN) to replace the then Nigerian Accounting Standards Board (NASB) which was formed in September 1982 (Ilaboya, 2015).
Jubril & Michael (2010) is of the opinion that the adoption was organized in such a way that all Stakeholders use the IFRS by January 2014, the adoption was scheduled to start with Public Listed Entities and Significant Public Interest Entities who were expected to adopt the IFRS by January 2012. Other Public Interest Entities are expected to mandatorily adopt the IFRS for statutorily purposes by January 2013 and Small and Medium-Sized Entities shall mandatorily adopt IFRS by January 2014.
However, according to Chamisa (2000, as cited in Madawaki, 2012) the successful adoption and implementation of these standards will remain a mirage in any country including Nigeria.
FRCN was therefore established in readiness for the adoption of the International Financial Reporting Standards in 2011 (Ilaboya, 2015). This study is therefore focused on the benefits and challenges of IFRS implementation in Nigeria as a developing economy, having in the domestic, legal and regulatory framework of the accounting profession.

1.2 Statement of the problem
It has being shown that there is poor/inadequate knowledge as it pertains to IFRS procedure and implementation in Nigeria, so also is the low level of awareness of preparers and users of financial statements, regulators, auditors and other stakeholders. According to Jubril & Michael (2010), there is also the problem of accounting education and training among regulatory authorities and stakeholders on the practical implementation of IFRS which constitutes a setback to the process, with the effect of existing laws on the smooth transition process to IFRS and the difficulty in understanding the extent of the impact of IFRS on the various sectors of the economy.
All these gave rise to the following research questions;
1. Is there proper knowledge and commitment among the regulatory authorities and the preparers of financial statements towards IFRS implementation in Nigeria?
2. What is the level of public awareness by regulators and other stakeholders on these standards?
3. Is there significant effect of accounting education and training among regulatory authorities and stakeholders in the practical implementation of IFRS in Nigeria?
4. What influence do existing Nigerian laws have on the smooth transition process to IFRS?
5. What is the impact of the IFRS on various sectors of the economy?

1.3 Objectives of the study
The objectives of the study include;
1. To determine ways of improving proper knowledge and commitment of the preparers of financial statements under IFRS in Nigeria.
2. To examine the level of public awareness by regulators and other stakeholders as it pertains to the use of these standards.
3. To ascertain the effect of accounting education and training among regulatory authorities and stakeholders in the practical implementation of IFRS in Nigeria.
4. To examine the influence of existing Nigeria laws on the smooth transition to IFRS.
5. To ascertain the impact of IFRS on various sectors of the economy.

1.4 Research Hypothesis
Taking into cognizance the nature and extent of the problems started so far, the researcher sees it necessary to formulate the following hypotheses:-
Ho1 There is no proper knowledge and commitment among the regulatory authorities and the preparers of financial statements towards IFRS in Nigeria.
Ho2 There is low level of public awareness by regulators and other stakeholders on the use of IFRS.
Ho3 Accounting education and training among regulatory authorities and stakeholders have no significant effect in the practical implementation of IFRS in Nigeria.
Ho4 There is no significant influence of existing Nigerian laws on the smooth transition process to IFRS.
Ho5 IFRS has a negative impact on various sectors of the economy

1.5 The scope of the study
This study is focused on the Nigerian economy with particular reference to the lectures and students of the Accounting Department of the University of Benin, Benin City, Edo State. The study is to be carried out with the aid of primary data in the form of questionnaire which is to be administered to the sample aforementioned. The study is to show the challenges of International Financial Reporting Standards (IFRS) implementation in Nigeria and this is to be carried out within a 3 month timeframe.

1.6 The significance of the study
In today’s ever changing environment and the globalization of accounting and financial information and interpretation, openness and transparency in annual report on an unprecedented scale may be unavoidable with the use of IFRS. Also, increasing demands for financial reporting accuracy and transparency, coupled with growing complexity and volume of accounting standards and regulations all over the world, have put a premium on ongoing global convergence efforts and Nigeria’s commitment to adopt IFRS.
There are immense benefits associated with this study and apart from assurance of useful and meaningful decisions on investment portfolio in the country, there would be attraction of Foreign Direct investment (FDI).
Jubril (2012) also mentioned that the significance of this study would create easier access to external capital, reduction in the cost of doing business across boarders by eliminating the need for supplementary information from Nigerian companies, easier regulation of financial information in the country and enhance knowledge of global financial reporting standards in tertiary institutions amongst others.
This study is also significant to the Nigerian economy as the IFRS would enhance transparency in the conduct of business in the private and public sectors of the economy (Jubril & Michael, 2010).
Researchers in other developing nations that are yet to adopt the policy may also find this study relevant in spite of the challenges associated with this study than in more advanced nations as IFRS is a globalized policy across the globe.

REFERENCES
Ilaboya, O. J. (2015). Advanced financial reporting: History of standardization.
Benin, Edo, Nigeria: Rehize Nigeria Limited.
Jubril, M. K.,& Michael, P. (2010). Minister lists benefits of IFRS convergence.
Retrieved from http://www.tribune.com.org
Madawaki, A. (2012). Adoption of International Financial Reporting Standard in developing
countries: The case of Nigeria. International Journal of Business and Management,7(3), 152-157. doi:10.5539/ijbm.v7n3p152
Saudi, S., & Umar, D. (2014). An assessment of compliance with IFRS framework at first-time adoption by the quoted banks in Nigeria. Journal of Finance and Accounting, 2(3), 64-73. doi:10.12691/jfa-2-3-3

CHAPTER TWO
REVIEW OF LITERATURE
2.1 Introduction
As discussed in the previous chapter, there are challenges to the implementation of the IFRS in Nigeria. In this chapter therefore we will be looking at studies already carried out on the subject matter.

2.2 Conceptual Framework
The International Financial Reporting Standards (IFRS) is a recent phenomenon pertaining to accounting standards. The national boundaries of capital markets began to take different shapes form the 1960’s to 1970’s and the 1980’s, this raised serious concerns about the difficulty in the comparability of financial information of one country to another especially when it involves international investors, lenders and other users of such financial information.
The period witnessed also an expansion in the operation of many business activities across national boundaries. Governments of different countries regulate and tax businesses that operate within their boundaries. It is this regulation and taxation that lead to the need for financial information. According to Musa (2000 as cited in Muhammed 2011) this government and tax authorities became strong advocates for global accounting standards.
The adoption of the International Financial Reporting Standards (IFRS) as a global reporting institutional framework for Nigeria financial reporting has its benefits. However, these benefits may not be fully achieved with the provisions of IFRS in total contrast with other accounting institutional framework within the country (Aruomoaghe & Esekhile, 2013).
It is therefore necessary for the legislative arm of the Nigerian Government to take the bull by the horn and urgently make the necessary amendments to the already existing law at variance with the provisions of IFRS. It is for such reasons that many International firms and bodies such as the World Bank, The International Monetary Fund (IMF), the Basel Committee on Banking Supervision, the United Nation (UN), the Organization for Economic Corporation (OECD) and the International Organization of Securities Commission (IOSCO), have publicly pursued the use of a global accounting standards.
Musa (2000, as cited in Muhammed, 2011) stated that these developments led to the formation of the International Accounting Standards Committee (IASC) in 1973 with the objectives of formulating and publishing in the public interest, accounting standards to be observed in the presentation of financial statements and to promote their world wide acceptance and observance.
The International Accounting Standard Committee (IASC), a body of professional accountancy bodies of independent countries, formed in June 1973 by the International Federation of Accountants (IFAC), produced the first set of International Accounting Standards known as the International Accounting Standards (IAS) between 1973 and 2001 (Roadmap, 2010). The IASB after the change in 2001 from IASC to IASB publishes its standards in a series of pronouncements called the International Financial Reporting Standards (IFRS).
In one of its earliest actions, IASB voted to make clear that IASs issued by the former IASC continue with full force and effect unless until the IASB amends or replaces them. The board announced that the term ‘IFRS’ should be understood to include IAS including the old interpretations given by the Standing Interpretations Committee (SIC) now referred to as the International Financial Reporting Interpretations Committee (IFRIC) Musa (2000 as cited in Muhammad, 2011).
According to Roadmap (2010), IFRS are a single set of high-quality understandable standards for general purpose financial reporting which are principles-based in contrast to the rules-based approach. IFRS comprises of three types of documents: IAS; IFRS; and the International Financial Reporting Issues Committee Statements (IFRICs) formerly called the Standing Interpretation Committee Statements (SICs). IFRSs are designed to encourage professional judgment and discourage over reliance on detailed rules.
The implementation of International Accounting Standards is more through persuasion and not mandatory on any country’s professional accountancy bodies who are members of the Board. These standards have the problem of automatic adoption and by all countries on account of differences in background and tradition of countries, differences in the needs by various economic environment and the perceived challenges to sovereignty of states in making and enforcing standards Fantl (1971, as cited in Akhidime, 2010).

2.2.1 List of IFRS
IFRS 1: First-time Adoption of International Financial Reporting Standards 2008
IFRS 2: Share-based Payment 2004
IFRS 3: Business Combinations 2008
IFRS 4: Insurance Contracts 2004
IFRS 5: Non-current Assets Held for Sale and Discontinued Operations 2004
IFRS 6: Exploration for and Evaluation of Mineral Assets 2004
IFRS 7: Financial Instruments: Disclosures 2005
IFRS 8: Operating Segments 2006
IFRS 9: Financial Instruments 2014
IFRS 10: Consolidated Financial Statements 2011

IFRS 11: Joint Arrangements 2011
IFRS 12: Disclosure of Interests in Other Entities 2011
IFRS 13: Fair Value Measurement 2011
IFRS 14: Regulatory Deferral Accounts 2014
IFRS 15: Revenue from Contracts with Customers 2014
IFRS 16: Leases 2016

2.2.2 Legal and Statutory Requirements
1. Companies and Allied Matters Act (CAMA) 1990 as amended to date
According to Roadmap (2010), The Companies and Allied Matters Act 1990 prescribe some formats and contents of company financial statements, disclosure requirements and auditing. It also requires that financial statements comply with the Statement of Accounting Standards (SAS) issued, from time to time, by the Nigerian Accounting Standards Board (NASB); and that the audit be carried out in accordance with generally accepted auditing standards.
2. Financial Reporting Council of Nigeria (FRCN) Act 2011
Uwaga (2015) stated that the Financial Reporting Council of Nigeria (FRCN) which was established by the FRCN Act No 6, 2011 under the watch of the Federal Ministry of Industry, Trade and Investment caters for the regulatory requirements for quality financial reporting and corporate governance. The Nigerian Accounting Standards Board (NASB) which was established in the year 1982 has now been replaced by the FRCN. The NASB grew especially during the Obasanjo regime when the administration enacted the NASB Act No 22, 2003. The main aim of the FRCN is to help guard and protect the interest of investors and stakeholders and also to advise them on issues that pertain to financial reporting and corporate governance i.e ensure that good corporate governance is practiced and ensure accuracy and reliability of financial reports. The FRCN also harmonizes the activities of relevant professional and regulatory bodies. The FRC issues/adopts standards to be used in preparing financial reports by public interest entities. The FRCN provides the regulatory framework for corporate governance and financial reporting.

2.2.3 IFRS Phases
Roadmap (2010) pointed out that IFRS is in three phases and these phases are as given below;
Phase 1: Publicly listed Entities and Significant Public Interest Entities
The recommended date for the adoption of IFRS by publicly listed entities and significant public interest entities was January 1, 2012 and this choice was based on the need to effectively transit to IFRS over a three year period. Any entity that starts preparation for transiting would need to convert its closing balances at December 2010 to IFRS-based figures which then become the opening balances as at January 1, 2011 for IFRS based financial statements as at December 31, 2011. This provides opening balances for January 1, 2012 which is the first IFRS full financial statements as at December 31, 2012 (with 2011 as comparative year). Within these years, all the required changes in business process, Information Technology, contractual obligations, etc necessary for effective IFRS-based financial statements must have been fully effected to give true, fair and complete IFRS-based financial statements. Mandatory reporting for all publicly listed entities and significant public interest entities shall be December 31, 2012. This means that all listed companies and significant public interest entities in Nigeria will statutorily be required to issue IFRS based financial statements for the year ended December 31, 2012.

Phase 2: Other Public Interest Entities
All other public interest entities are expected to mandatorily adopt IFRS, for statutory purposes, by January 1, 2013. This means that all other public interest entities in Nigeria will statutorily be required to issue IFRS based financial statements for the year ended December 31, 2013.

Phase 3: Small and Medium-sized Entities (SMEs)
SMEs were mandated to adopt IFRS by January 1, 2014. This means that all Small and Medium-sized Entities in Nigeria will statutorily be required to issue IFRS based financial statements for the year ended December 31, 2014. Entities that do not meet the IFRS for SME’s criteria shall report using Small and Medium-sized Entities Guidelines on Accounting (SMEGA) Level 3 issued by the United Nations Conference on Trade and Development (UNCTAD).

2.3 Discussion of Variables The move towards IFRS has evolved around a widespread agreement to harmonize accounting standards internationally. The ultimate goal is to reduce cost of multinationals corporations, and to help investors make correct comparisons between companies across the world.
The users of financial information have advocated for the development of global standards that will provide more consistent and comparable reporting worldwide. IFRS does not only affect large International Companies, smaller entities in Nigeria, who look overseas for investors or potential alternative financing sources will also have to aware of these new reporting standards.
Upon implementation of IFRS, its users will have the ability to compare the performance of all companies regardless of their country they are domicile of. IFRS is not just a way to provide a global accounting standards, it is also an opportunity to look into the quality and integrity of management through judgment made when reporting financial results.
As stated earlier, the evolution in the accounting profession started in the 1960’s, this also holds true for the accounting profession in Nigeria. It was during this period that Nigerian accountants especially trained by professional accounting bodies in the United Kingdom came together and formed a professional accounting body which was responsible for the training of accountants in Nigeria and fostering the development of the profession in the country.
There are numerous professional accounting bodies that presently carry out these functions but two of such bodies stand out in Nigeria and they include; the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN). They are self-regulating and both membership elect governing council members. ICAN acts as an examining body for awarding Chartered Accountants Certification and as the licensing Accounting body for members who choose to engage in public auditing practices. Members of ICAN are recognized under the Companies and Allied Matters (CAMA) as the sole auditors of company accounts. ICAN is a member of the International Federation of Accountants (IFAC) and has strong International foundation and relationship. ICAN members dominate accounting and auditing services in the private sector while ANAN members are mostly employed in the public sector.
According to Madawaki (2012), the practical challenges that may be faced in Nigeria as a result of implementing the IFRS have been evidenced by previous studies conducted by scholars to include: (Alp and Ustundag, 2009): potential knowledge shortfall, (Li and Meeks, 2006): legal system effect, (Shleifer and Vishny, 2003): tax system effect, (Irvine and Lucas, 2006): education and training, (Martins, 2011): enforcement and compliance mechanism. The challenges are discussed as follows:

2.3.1. Level of Awareness
The transition plan to IFRS and its implementations for preparers and users of financial statements, regulators, educators and other stakeholders have to be effectively coordinated and communicated. This should include raising awareness on the potential impact of the conversion, identifying regulatory synergies to be derived and communicating, the temporary impact of the transition on business performance and financial position. The implementation of IFRS requires considerable preparation both at the country and entity levels to ensure coherence and provide clarity on the authority that IFRS will have in relation to other existing national laws.

2.3.2. Accounting Education and Training
Practical implementation of IFRS requires adequate technical capacity among preparers and users of financial statements, auditors and regulatory authorities. Countries that implemented IFRS faced a variety of capacity-related issues, depending on the approach they took. One of the principal challenges Nigeria may encounter in the practical implementation process, shall be the shortage of accountants and auditors who are technically competent of implementing IFRS. Usually, the time lag between decision date and the actual implementation date is not sufficiently long to train a good number of professionals who could competently apply International standard.

2.3.3. Training Resources
Professional accountants are looked upon to ensure successful implementation of IFRS. Along with these accountants, government officials, financial analysts, auditors, tax practitioners, regulators, accounting lecturers, stock brokers, preparers of financial statements and information officers are all responsible for smooth process. Training materials on IFRS are not readily available at affordable cost in Nigeria to train such a large group which poses a great challenge to IFRS.

2.3.4 Tax Reporting
The tax considerations associated with the conversion the IFRS, like other aspects of a conversion, are complex. IFRS conversion calls for a detailed review of tax laws and tax administration. Specific taxation rules would have to be redefined to accommodate these adjustments. For instance, tax laws which limit relief of tax losses to four years should be reviewed. This is due to the fact that transition adjustments may result in huge losses that may not be recoverable in four years. Accounting issues that may present significance tax burden on IFRS, include determination of impairment, loan loss provision and investment in securities /financial instruments.

2.3.5. Amendment of Existing Laws
In Nigeria, accounting practices are governed by the Companies and Allied Matters Act (CAMA) 1990, and the Statement of Accounting Standards (SAS) issued by the Nigerian Accounting Standards Boards (NASB) and other existing laws such as Nigerian Stock Exchange Act 1961, Nigeria Deposit Act 2006, Banks and Other Financial Institution Act 1991, Investment and Securities Act 2007, Companies Income Tax Act 2004, Federal Inland Revenue Services Act 2007. All these provide some guidelines on preparation of financial statements in Nigeria. IFRS does not recognize the presence of these laws and the Accountants have to follow the IFRS fully with no overriding provisions from these laws. Nigerian law makers have to make necessary amendments to ensure a smooth transition to IFRS.

2.4 Prior Studies
Akhidime & Ekiomado (2014) worked on ‘Adoption and implementation of International Financial Reporting Standards (IFRSs) in Nigeria: Enduring challenges and implications’ and it was revealed that the particular IFRS Nigerian challenges include: inadequate preparation and development of Nigerian educational institutions by the lack of curriculum review and update and alignment with IFRS. They also identified the non-amendment of Nigeria’s corporate financial reporting laws in recognition of IFRS as the local challenge.
It is also necessary that the statutory framework that guides the preparation of financial information be strengthened and harmonized to guarantee that the IFRS framework is adopted for real as the users and other stakeholders will continue to rely on qualitative framework which will in turn bring about quality financial information that will aid in their various decision making. (Aruomoaghe &Esekhile, 2013) in ‘Institutional framework for accounting policy and reporting in Nigeria: The unresolved issue’.
According to Demaki (2013), in a work titled ‘Prospects and challenges of International Financial Reporting Standards to economic development in Nigeria’ I of the opinion that overcoming IFRS challenges will require updating accounting curricula in all training institutions including the universities and polytechnics in Nigeria. It will also be necessary to harmonize regulatory requirements by amending existing laws that may be a drawback to IFRS.
Garuba & Donwa (2011) conducted a research on The challenges of adopting international financial reporting system in Nigeria and identified some challenges that Nigeria as a country is likely to face as regarding the adoption of IFRS and also brought forward some solutions which if given proper attention will help with IFRS implementation, they also established the need for uniformity in financial reporting which is the main objective of IFRS.
Madawaki (2012) researched on Adoption of International Financial Reporting Standards in developing countries: The case of Nigeria and is of the opinion that conversion to IFRS in Nigeria is a huge task and a big challenge and its revolutionary impact requires a great deal of decisiveness and commitment but it is still in the best interest of Nigeria to adopt IFRS.
A study carried out by Odia & Ogiedu (2013) in IFRS adoption: issues, challenges and lessons for Nigeria and other adopters reveals that the adoption of IFRS has continued with many countries setting timetable or roadmap and expecting to reap the benefits of adopting IFRS. However, there are challenges that such countries must confront and tackle.
Okoye et al (2014) in a study carried out on Impact of the IFRS adoption on stock market movement in Nigerian corporate organisation said that the adoption of IFRS is a move made in the appropriate direction and although there are issues and challenges facing the implementation, the benefits is said to overcome the challenges.
Olarewaju (2015) on Recent developments in professional practice of accountancy in Nigeria: The impacts and challenges identified the challenges associated with accounting professionals in Nigeria especially with the inception of globalisation and with the adoption of IFRS, technological advancement and global code of conduct has become a necessity for accountant in order to meet up with global demands.
The findings of Udofia & Ikpantan (2015) in a previous study on International Financial Reporting Standard (IFRS) adaptation in Nigeria: Prospects and challenges revealed that Nigeria has consented to adapt IFRS though it is going to be a gradual process in view of the expected problems that the standards may create and they also advised that companies in Nigeria should move to IFRS as it would improve accountability and transparency and also bring about improvement in the quality of reporting.

2.5 Theoretical Framework
This research hinges on communicative accounting theory.

Communicative Accounting Theory
If financial accounting is deemed to be a communication process rather than a means of communication, then the problem which arises is a consequence of the definition of communication. For instance Berlo (1960) and Miller (1966) maintain that the purpose of communication is to influence, that is “to affect with intent”. The definition of communication is linked to the influencing of behaviour. Accordingly, this definition may suggest to some accounting theorists that the purpose of financial accounting information is to influence behavior, and accordingly users are conditioned as was Pavlov’s dog. Ashton’s (1976) findings suggest evidence of the existence of functional fixation in an accounting context.
However, language by definition is neutral. Therefore as it pertains to IFRS implementation, communication is very essential as without it, there will be issues in the implementation of IFRS.

REFERENCES
Akhidime, A.E. (2010). The adoption and implementation of International Financial Reporting Standards (IFRS): Evaluation of the roles of key stakeholders in Nigeria. AAU Journal of Management Sciences, 1(1), 147-157.
Akhidime, A.E., & Ekiomado, E.B. (2014). Adoption and implementation of International Financial Reporting Standards (IFRSs) in Nigeria: Enduring challenges and implications. International Journal of Development and Substainability, 3(11),
2090-2100.
Aruomoagbe, J., & Esekhile, E. (2013). Institutional framework for accounting policy and reporting in Nigeria: The unresolved issue. European Journal of Business and Management, 5(22), 125-128.
Demaki, G.O. (2013). Prospects and challenges of International Financial Reporting Standards to economic development in Nigeria. Global Journal of Management and Business Research, 13(1), 69-73.
Garuba, A. O.,& Donwa, P. (2011). The challenges of adopting international financial reporting system in Nigeria. Journal of Research in National Development, 9(1), 313-319.
Jubril, M.K., & Michael, P. (2010). Minister lists benefits of IFRS convergence.
Retrieved from http://www.tribune.com.org
Madawaki, A. (2012). Adoption of International Financial Reporting Standards in developing countries: The case of Nigeria. International Journal of Business and Management, 7(3), 152-161. doi:10.5539/ijbm.v7n3p152
Muhammad, A.M.(2011). Contemporary issues in accounting development. A publication of the Association of National Accountants of Nigeria (ANAN) MPCD 2011.
Odia, J.O., & Ogiedu, K.O. (2013). IFRS adoption: Issues, challenges and lessons for Nigeria and other adopters. Mediterranean Journal of Social Sciences 4(3), 389-399. doi:10.5901/mjss.2013.v4n3p389
Olarewaju, O. R. (2015). Recent developments in professional practice of accountancy in Nigeria: The impacts and challenges. European Journal of Business and Management, 7(21), 65-70.
Okoye, P.V.C., Okoye, J.F.N., & Ezejiofor, R.A. (2014). Impact of the IFRS adoption on
stock market movement in Nigerian corporate organisation. International Journal of Academic Research in Business and Social Sciences, 4(9), 202-218. doi:10.6007/IJARBSS/v4-i9/1150
Report of the committee on roadmap to the adoption of IFRS in Nigeria (2010).
Retrieved from http://www.nasb.org
Uwada, C. (2015). Financial reporting council of Nigeria: A regulator or tax collector
Retrieved from http://www.vanguardngr.com
Udofia L., & Ikpantan, I. (2015). International Financial Reporting Standard (IFRS) adaptation in Nigeria: Prospects and challenges. Research Journal of Finance and Accounting, 6(18), 11-16.

CHAPTER THREE
RESEARCH METHODOLY
3.1 Introduction This chapter is aimed at stating the methodology intended to be used for the purpose of this research, it also states the technique that is used in the collection and analysis of data and the type of data to be used.

3.2 The Design of the study
This research work adopted a predominantly review approach and according to Nachmias & Nachmias (1981), the research design refers to the logical model of proof that allows the researcher draw inferences concerning relationships among variables under review. Primary sources of data were used to get the information needs in this research work.
Primary Sources
Agbonifoh & Yomere (1999) views primary sources as involving the carrying out of an original investigation to obtain data primarily and specifically for a research purpose. The information generated for the purpose of this work was obtained in the following ways:
i Administration of questionnaire to selected stakeholders and members of the public.
ii Oral interview.
iii Internet sources of information.

3.3 The population of study
A population is a set of existing units (Shaibu, 2014) and the population for this study is lecturers and students of the Accounting department in the University of Benin.
3.4 Sample and sampling techniques
According to Shaibu (2014), the subset of the units of a population is a sample. To address the challenges of IFRS implementation in the context of financial reporting, the researcher randomly selected lecturers and students of the Accounting department in the University of Benin.

3.5 Instrument for data collection
The instrument for data collection used for this research is questionnaire and oral interview.

3.6 Validation of instrument
With the main aim of collecting the most relevant and appropriate data for this research, the questionnaire was properly structured so as to allow the respondents easy understanding of the information that are sort for.
List of questions were structured in relation to the aim of the study and the hypothesis to be verified to which the respondent were required to answer, the questionnaire is particularly useful when the researcher wants to obtain answers to the same set of questions from several people (Agbonifoh & Yomere, 1999).
As a result, the research instrument and the resultant data collected for this research are reasonably valid and reliable.

3.7 Method for data collection (Administration of Instrument)
For the purpose of this research work, the researcher presented the questionnaire directly to the respondent in a well-structured manner with response options from which the respondent are expected to selected the most suitable response in a clear and understandable language so as to avoid and minimize bias responses and incidence of non-response to questionnaire. The researcher in turn collates the entire questionnaire after completion

REFERENCES
Agbonifoh, B.A., & Yomere, G.O. (1999). Research methodology in the management and
social sciences. Benin, Edo, Nigeria: Uniben Press.
Nachmias, D., & Nachmias, C. (1981). Research methods in the social sciences. New York: St Martins Press
Shaibu, I. (2014). Statistical analysis for decision making. Benin, Edo, Nigeria: ACME.
(Original work published 2009)

CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Introduction

This chapter has to do with the presentation and analysis of all data collected during the research process. The data collected will be analyzed with the stated hypothesis as written in chapter one of this project. The data represents 70 questionnaires that were distributed during the course of this research. All 70 questionnaires that were distributed were returned by the respondents representing 100%. The following are the presentation and analysis of the sought data derived from the survey.

4.2 Data Analysis
Table 4.1: Educational Status of Respondents

Status Frequency Percent

Lecturer 19 27.1
Student 51 72.9
Total 70 100.0
Field Survey 2016
Table 4.1 shows the educational status of respondents, the table indicates that 19 respondents which is 27.1% of the total respondents are lectures while the remaining 51 respondents which is 72.9% of the sampled respondents are students.

Table 4.2: Gender of Respondents

Gender Frequency Percent

Male 29 41.4
Female 41 58.6
Total 70 100.0
Field Survey 2016
Table 4.2 shows the distribution of respondents based on their gender, the table indicate that of the sampled population, 29 respondents which is 41.4% of the entire respondents are male while 41 respondents which is 58.6% of the sampled population are female.

4.3 Hypothesis testing
Hypothesis one: There is no proper knowledge and commitment among the regulatory authorities and the preparers of financial statement towards IFRS in Nigeria.

Table 4.3: Chi-Square Statistic of the knowledge and commitment towards IFRS in Nigeria.

STATEMENT Strongly agree Agree
Not sure Disagree Strongly disagreed
Df

X2-cal
X2-tab
p-value
N % N % N % N % N %
Effort is being put in by accounting bodies in ensuring that prepares of financial statement have adequate knowledge of IFRS 12 17.1 41 58.6 10 14.3 7 10 0 0

3

42.8

7.81

0.00

Statement YES NO NO RESPOND

Df

X2-cal

X2-tab

p-value

N
%
N
%
N
%
The adoption of IFRS is in stages with respective dates 67 95.7 2 2.9 1 1.4
2

61.23

7.81
0.00
Accounting professional bodies in Nigeria have proper knowledge of the IFRS 44 62.9 26 37.1 0
0

1
4.629

7.81

0.031

Prepares of financial statement in Nigeria have proper knowledge of the IFRS 34 48.6 36 51.4 0 0
1
0.057

7.81
0.811
Author’s computation using SPSS 20
Table 4.3 shows the response of the respondents based on the knowledge and commitment among the regulatory authorities and the preparers of financial statement towards IFRS in Nigeria, the result shows that of the 70 respondents who responded to the questionnaire 44 respondents which makes up 62.9% of the population hold the opinion that accounting professional bodies in Nigeria have proper knowledge of the proposed IFRS while the others 26 respondents representing 37.1% of the sampled population believe that accounting professional bodies in Nigeria does not have proper knowledge of the proposed IFRS the chi-square statistics is used to test if significant difference exist between the responses of respondents, since the x2-cal > x2-tab while the p-value < 0.05 it implies that, at 5% level of significance accounting professional bodies in Nigeria have proper knowledge of proposed IFRS. The table also revealed that 34 respondents support the assertion which states that prepares of financial statement in Nigeria have proper knowledge of the proposed IFRS and they represent 48.6% of the respondents while the other 36 respondents are against the assertion that prepares of financial statement in Nigeria have proper knowledge of the proposed IFRS and they represents 51.4% of the respondents sampled, since the x2-cal < x2-tab while the p-value > 0.05 it implies that prepares of financial statement in Nigeria does not have proper knowledge of the proposed IFRS. The adoption of IFRS is in stages with respective dates is the general believe of 67 respondents representing 95.7% of the sampled population as against the 2 other respondents who are of the view that the adoption of IFRS is in stages with respective dates representing 2.9% of the respondents while 1 respondent did not respond to this questionnaire item. from the table, the x2-cal > x2-tab while the p-value < 0.05 it implies that, at 5% level of significance, the adoption of IFRS is in stages with respective dates. the result also shows that 53 respondents believes that effort is being put in place by accounting bodies in ensuring that prepares of financial statement have adequate knowledge of IFRS and they represents 75.2% of the sampled population as against the other 7 respondents who are of the view that effort is yet to be put in place by accounting bodies to ensure that prepares of financial statement have adequate knowledge of IFRS and these numbers of respondents represent 10% of the respondents, it was also observed that 10 respondents which is 14.3% of the respondents were indifferent if effort is being put in by accounting bodies in ensuring that prepares of financial statement have adequate knowledge of IFRS. From the table, the x2-cal > x2-tab while the p-value < 0.05 it implies that, at 5% level of significance effort is being put in by accounting bodies in ensuring that prepares of financial statement have adequate knowledge of IFRS. Conclusively, while accounting professional bodies in Nigeria have proper knowledge of the proposed IFRS, prepares of financial statement in Nigeria does not have proper knowledge of the proposed IFRS. The adoption of IFRS is in stages with respective dates and effort is being put in by accounting bodies in ensuring that prepares of financial statement have adequate knowledge of IFRS. Hence there is proper knowledge and commitment by the regulatory authorities towards IFRS in Nigeria but there is no proper knowledge by the preparers of financial statement of IFRS in Nigeria. Therefore at 5% level of significant we accept the null hypothesis which states that there is no proper knowledge and commitment among the regulatory authorities and the preparers of financial statement towards IFRS in Nigeria Hypothesis two: There is low level of public awareness by the regulatory authorities and stakeholders on the use of IFRS. Table 4.4: Chi-Square Statistic of the level of public awareness STATEMENT Strongly agree Agree Not sure Disagree Strongly disagreed Df X2-cal X2-tab p-value N % N % N % N % N % THERE IS LOW LEVEL OF PUBLIC AWARENESS OF IFRS ADOPTION AND IMPLEMENTATION AMONG REGULATORY BODIES AND STAKEHOLDERS IN NIGERIA 15 21.4 47 67.1 5 7.1 2 2.9 1 1.4 4 106.0 7.81 0.000 Statement YES NO NO RESPOND Df X2-cal X2-tab p-value N % N % N % ARE YOU CONCIOUS ABOUT THE ADOPTION OF IFRS IN NIGERIA 68 97.1 2 2.9 0 0 1 62.229 0.00 USERS OF FINANCIAL STATEMENT IN NIGERIA HAVE PROPER KNOWLEDGE OF THE IFRS 8 11.4 62 88.6 0 0 1 41.657 7.81 0.000 Author's computation using SPSS 20 Table 4.4 shows the responses of respondents based on the level of public awareness by the regulatory authorities and stakeholders on the use of IFRS. From the sampled respondents, 68 respondents are conscious about the adoption of IFRS in Nigeria and these respondents represents 97.1% of the sampled population while the others 2 respondents are not conscious about the adoption of IFRS in Nigeria. since the x2-cal > x2-tab while the p-value < 0.05 it implies that, at 5% level of significance the respondents are conscious about the adoption of IFRS in Nigeria. the result also shows that 8 respondents that is 11.4% of the respondents believe that users of financial statement in Nigeria have proper knowledge of the proposed IFRS while on the contrary the other 62 respondents that is 86.9% of the respondents believe that users of financial statement in Nigeria does not have proper knowledge of the proposed IFRS. from the table, the x2-cal > x2-tab while the p-value < 0.05 it implies that, at 5% level of significance, users of financial statement in Nigeria have proper knowledge of the proposed IFRS. the result also shows that 62 respondents which is 88.5% of the sampled population support the assertion which states that there is low level of public awareness of IFRS adoption and implementation among regulatory bodies and stakeholders in Nigeria however 3 respondents which is 4.3% of the respondents were not in support of the assertion, while 7.1% of the respondents where indifferent if there is low level of public awareness of IFRS adoption and implementation among regulatory bodies and stakeholders in Nigeria. The chi-square statistic indicates that there is low level of public awareness of IFRS adoption and implementation among regulatory bodies and stakeholders in Nigeria. Conclusively, the result indicates that while the respondents are conscious about the adoption of IFRS in Nigeria, users of financial statement in Nigeria do not have proper knowledge of the proposed IFRS and there is low level of public awareness of IFRS adoption and implementation among regulatory bodies and stakeholders in Nigeria. Therefore we accept the null hypothesis which states that there is low level of public awareness by the regulatory authorities and stakeholders on the use of IFRS.

Source: Essay UK - http://www.essay.uk.com/essays/finance/implementation-ifrs-nigeria/


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