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Donaldson, L. and Davis, J. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns: Australian journal of Management, pp 49-65 (June 1991).

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Article

An Assessement of Compliance with IFRS Framework at First-Time Adoption by the Quoted Banks in Nigeria

1Aberdeen Business School, Robert Gordon University, United Kingdom

2Debt Management Agency, Bauchi State, Nigeira


Journal of Finance and Accounting. 2014, Vol. 2 No. 3, 64-73
DOI: 10.12691/jfa-2-3-3
Copyright © 2014 Science and Education Publishing

Cite this paper:
Sani Saidu, Umar Dauda. An Assessement of Compliance with IFRS Framework at First-Time Adoption by the Quoted Banks in Nigeria. Journal of Finance and Accounting. 2014; 2(3):64-73. doi: 10.12691/jfa-2-3-3.

Correspondence to: Sani  Saidu, Aberdeen Business School, Robert Gordon University, United Kingdom. Email: s.saidu@rgu.ac.uk

Abstract

The move towards adopting unified and higher quality accounting standards across the globe started fully in 80s and was catalyzed by stakeholders in advanced economies, in the year 2001 with the establishment of the International Accounting Standards Board (IASB). In its first sitting, the new board unanimously agreed to consolidate all the Standards issued under IASC (IASs) with the ones issued under the new board (IFRSs) as IFRS-framework. The board also stipulated clear procedures to be followed by every entity adopting the consolidated framework. Thus, this study assessed the extent to which the Nigerian Banking Industry complied with these requirements as captured in IFRS 1: First Time Adoption of IFRS. Using ex-post facto and survey research designs, the study sourced data from structured questionnaire and recent audited financial reports of the sampled banks. Qualitative Grading System (QGS) was employed in determining the degree of compliance of the banks while Multivariate regression and Chi-squire test were used in measuring the effect of the factors responsible of such compliance and identified probable difficulties in the process respectively. The study concludes that, Nigerian banking industry complied (semi-strongly) with the requirements of IFRS-framework but, the exercise is still faced with some challenges which include: lack of indepth IFRS knowledge from the preparers of the financial reports. The study also found amenability, globalization and response to users’ needs as factors significantly influencing the compliance level of Nigerian banks with IFRS-framework.

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