Stakeholders’ Perception of the Implementation of International Financial Reporting Standards (IFRS) in Nigeria

Abstract

This study examined the stakeholders’ perception of the adoption of IFRS in Nigeria. It sought to establish among others whether the implementation of IFRS in Nigeria has enhanced the value of financial reporting in the country. The data generated from the questionnaire were analysed using Analysis of Variance (ANOVA). In the study, the opinion of users of financial reports was sought through a cross-sectional survey. The study reveals that significant differences exist in the perceptions of stakeholders regarding the effect of the working of IFRS on the value of financial reports; no considerable differences in their perception about the implementation of IFRS with respect to the improvement on quality of investment decisions ; and as a basis for assessing returns on investment and whether comparison of financial reports in Nigeria have been enhanced. Based on these findings, it was recommended that relevant authorities should ensure that organisations comply with established standards when preparing financial statements; and auditors must assert their independence with a view to ensuring that audit reports reflect the actual position of the entity’s financial circumstances. Government was further advised to strengthen the Financial Reporting Council of Nigeria with qualified personnel in order to adequately perform its functions.