Mandatory Environmental Disclosures by Companies Complying With IAS/IFRS: A Case of Nigeria (Published)
The Report of the Vision 2020 Committee set up to provide a roadmap that will propel Nigeria among the top 20 world economies by 2020 acknowledged that the country is faced with many environmental problems such as the continuous exploitation of marginal lands, drought and desertification in the north, severe gully erosion in eastern and northern states, uncontrolled logging with inherent problems of the destruction of bio-diversity, inappropriate agricultural practices, destruction of watershed, destruction of vast agricultural lands, creation of burrow pits due to bad mining practices and road works, oil pollution from spillage and gas flaring, urban decay and squatter settlements, industrial pollution and municipal waste generation among other things. In view of the above, this paper examines mandatory disclosure of environmental accounting by companies complying with IFRS/IAS in Nigeria. Contents analysis research design was adopted by reviewing the available literature in the field of this study. It was discovered that Nigeria was facing with challenges of inaccurate data, incompetent manpower, and lack of transparency among companies. Despite these shortcomings Mandatory reporting present several advantages such as the creation of standardized and comparable measures that enable benchmarking and best practices among companies complying with IFRS/IAS in Nigeria. It was concluded that aside from complying with IFRS/IAS, Incentives and enforcement was also identified as a factor for full convergence and comparability among companies.
Keywords: Companies, IAS, IFRS, Nigeria, environmental disclosures
Board Meetings and Financial Performance of Insurance Companies in Nigeria (Published)
This study examined the impact of board activism on performance of quoted insurance companies in Nigeria. The study evaluates the effect of board meetings on the financial performance of 15 listed insurance companies existing on the Nigeria stock exchange between the period 2006-2017.Panel data regression and descriptive analysis was used to analyze the data obtained from the annual report of the sampled companies. The result of the study revealed a negative relationship with no significant impact between the board meeting and performance of insurance firms in Nigeria with emphasis on Return on Equity, Return on Asset and Tobin’s Q. It was suggested that regulatory authority focus their attention more on the skill and experience of directors at meeting of the board for good performance.
Keywords: Board, Insurance, Meetings, Nigeria, Performance
International Financial Reporting Standard (IFRS) Adoption and Revenue Generation: A Descriptive Study of Nigeria and Ghana (Published)
Years after the inception of International Financial Reporting Standards (IFRS), most countries of the world now permit its utilization in their countries including West Africa countries such as Nigeria and Ghana. However, some countries of the world still have not subscribed to the IFRS situation. It is thus necessary to examine the situation of things with the countries that have adopted to know if the adoption has contributed to their growth favourably or adversely. This study adopted expost facto research design to examine how IFRS has influence Revenue base of the selected countries (Nigeria and Ghana). The study concludes that it is in the best interest of developing countries to adopt IFRS. The IFRS ship is already making its way around the world as a single set of high quality global accounting standards and also facilitating revenue flow into the country. Therefore, the earlier other countries come on board, the better for them.
Keywords: Adoption, Ghana, International Financial Reporting standard, Nigeria, Revenue Generation, descriptive study
Effects of International Public Sector Accounting Standards on Financial Accountability in Nigeria Public Sector (Published)
The study examined the effect of International Public Sector Accounting Standards on financial accountability in the Nigerian public sector. Specifically, the study investigated the effect of International public sector accounting standards on the efficient management of public fund in the Nigerian public sectors and assessed the extent to which international public sector accounting standards enhance effective budget implementation in the Nigeria public sector. The population of the study comprises of all the staff in internal audit department, accounting department and finance department of the 18 Local Governments in Ondo State. Questionnaire was used to gather information from the selected respondents in the departments. The questionnaire was ranked using five-point Likert scale. The study employed Multiple Regression Analysis and Pearson’s Correlation Matrix to identify the effect of the effect of International Public Sector Accounting Standards on financial accountability in the Nigerian public sector. The study revealed that International Public Sector Accounting Standards has positive and significant effect on the efficient management of public funds in the Nigerian Public sector. The study recommended that the federal government should release fund to power the adoption IPSAS and made fund available for training of civil servants on International Public Sector Accounting Standards software.
Keywords: Accounting Standards, Financial Accountability, International, Nigeria, Public Sector
Adoption of International Financial Reporting Standards in Nigeria: A Conceptual Appraisal (Published)
A recent reality of globalization is the harmonization of accounting standards. Accounting is said to be the language of business; if this assertion holds true, then the move by the International Accounting Standards Board (IASB) to harmonise accounting standards used in the preparation of financial statements across the world is a move in the right direction. This study examined the adoption of International Financial Reporting Standards (IFRS) in Nigeria with particular emphasis on the prospects and challenges of IFRS adoption in Nigeria. The major objective of the study was to identify the benefits and challenges of adopting International Financial Reporting Standards (IFRS) in Nigeria. The descriptive research design was used in the investigation that led to the production of this paper. Data were initially collected through review of existing literature and thereafter through questionnaire administration and personal interviews. Tables and percentages were used in summarizing data obtained. Based on the results of the study, it was found that adoption of International Financial Reporting Standards (IFRS) in Nigeria will help Nigeria and Nigerian corporations, among other benefits, secure access to global capital markets. Thus, the study concluded that Nigeria will benefit to a significant extent from the adoption of IFRS. One of the recommendations made was that Government at all levels, financial regulatory agencies, professional accountancy bodies, private and public companies and institutions, and accountancy firms should fast-track IFRS education in order to boost the acquisition of IFRS knowledge and competences.
Keywords: Adoption, Appraisal, Financial, International, Nigeria, reporting standards
Perception on Audit Expectation Gap on the Statutory Duty of Nigerian Auditor (Published)
The accountancy profession is a unique one and should be concerned with the provision of true and definitive financial information that can assist all the stakeholders in taking appropriate decisions after meeting auditor’s requirements. Undoubtedly, an expectation gap always exists between the stakeholders (as they appear not knowing the exact the duty of a statutory auditor) and auditor (whose duty is spelt out in the statute irrespective of the high demand by the stakeholders). The first objective of this study is to determine whether or not the stakeholders / users of financial statements are conversant with the duty of an auditor under the Nigerian law. The second objective is to find out through the stakeholders’ perceptions whether the audit expectation gap can influence them in taking decisions. Questionnaire is used as the instrument for collecting the required data. Descriptive statistic and simple regression (after conversion) are used in analyzing the data. The study reveals that majority of the stakeholders are not familiar with the statutory duty of an auditor and that the audit expectation gap is less significant in taking their decisions. Other finding is that the auditors’ report is not detailed enough with a view to disclosing any gap that may arise. The recommendations of the study are that the management and directors of companies should adequately educate the stakeholders on the statutory duty of auditor and the report of the auditor should be detailed enough in order to meet the needs of shareholders especially on any gap that may arise.
Keywords: Audit Expectation Gap, Auditor, Nigeria, Statutory Duty
Analysis of Interest Rate Determination and Its Effect on Economic Growth in Nigeria (1990-2017) (Published)
The study examined the analysis of interest rate determination and its effect on economic growth in Nigeria; for the period 1990-2017. Secondary data were used and sourced from Central Bank of Nigeria Statistical Bulletin. The study employed Gross Domestic Product as proxy for Economic Growth and used as the dependent variable; whereas, prime lending rate (interest rate), inflation and private domestic investment were used as explanatory variables to measure interest rate. Hypotheses were formulated and tested using Ordinary Least Square econometrics models. Private domestic investment had a significant effect on Gross Domestic Product in Nigeria. Inflation had an insignificant effect on Gross Domestic Product in Nigeria. Interest rate had an inverse significant effect on Gross Domestic Product in Nigeria. The coefficient of determination indicates that about 65% of the variations in economic growth can be explained by changes in commercial bank lending variables in Nigeria. The study concluded that interest rate had an insignificant effect on economic growth in Nigeria. The study recommended that Government and policy makers should focus on maintaining inflation at a low rate (single digit) and ensure that the rate is stable; this will take care of the problem of inflation on the economy. CBN should increase their surveillance on the commercial banks; in order to address the issue of arbitrarily increase of the lending rate. Government should provide healthy environment for the banks in the industry so as to render efficient financial services to the economy.
Keywords: Analysis, Determination, Economic, Growth, Interest Rate, Nigeria
Financial Reporting Quality and Its Effect on Investment Decisions by Nigerian Deposit Money Banks (Published)
The study investigated the effects of financial reporting quality on investment decision making by Deposit Money Banks in reference to Zenith Bank Plc, Nigeria. Data obtained from the audited annual reports of Zenith Bank Plc that covered period of 2009 – 2016.The study utilised both Descriptive and Ordinary Least Square Regression method with the aid of using E-view 9 to analyse the data. The findings showed that, there was a significant effect of variables of (Financial Reporting Quality FRQ measures as profit after tax, cash used in/ from investing and cash and cash equivalent) on investment. The result also shows that, Financial Reporting Quality has significantly influenced on investment of Deposit Money Banks with (R2 = 0.98; P <0.05). The study concluded that, higher financial reporting quality increases investment decision by Deposit Money Banks in Nigeria.
Keywords: Cash, Deposit Money Banks, Financial Reporting Quality., Investment, Nigeria, Profit after tax
Corporate Board Size, Risk Management and Financial Performance of Listed Deposit Money Banks in Nigeria (Published)
This study examined the effect of corporate board size, risk management on financial performance of listed deposit money banks in Nigeria for the period of 2011-2016. The population of the study is fifteen (15) listed deposit money banks in Nigeria out of which a sample of fourteen (14) were used for the study due to the accessibility and availability of data. Corporate board size and risk management as the independent variable was proxy with numbers of board of directors, liquidity risk, credit risk and operating risk, while the return on equity(ROE) and earnings per share (EPS) were used to proxy financial performance. Data were collected from secondary source through the annual report and account of the banks for the period under study and the data was analysed using multiple panel regression techniques. The findings reveal that board size, credit risk and operating risk are significant negative effect on return on equity (ROE) and earnings per share (EPS) respectively. The study also shows that liquidity risk is negative and insignificant effect on ROE and EPS of the study banks in Nigeria. It is recommended among others that the banks should regulate their risk management practices and ensure they minimize the non-performing loan as it has been found empirically to reduce the quality of the firm’s financial performance. They should also reduce their operational cost for better performance
Keywords: Banks’, Corporate board size, Financial Performance, Nigeria, Risk Management
Effect of IFRS Adoption on Audit Fees of Listed Deposit Money Banks in Nigeria (Published)
We ascertain the effects of International Financial Reporting Standards (IFRS) adoption on the audit fees payable by listed Deposit Money Banks (DMB) in Nigeria. Data for the study was collected from the annual reports of the 15 listed DMBs in Nigeria. The study period spanned two accounting standard regimes: the Nigerian Statements of Accounting Standards (SAS) (2009- 2011) and the IFRS (2012-2014). We analysed the effect of IFRS adoption on audit fees in Nigeria in two ways: first we compared audit fees and the known determinants (audit task complexity and reporting quality) under the two standards regimes using a paired-sample t-test. Second, we employed multivariate analysis to examine and explain the combined effect of audit task complexity, financial reporting quality and IFRS in explaining the change in audit fee following IFRS adoption. We found that audit fees are significantly higher under the IFRS than under the SAS; we also found that IFRS adoption has significantly increased audit complexity and improved financial reporting quality. We conclude that less than 50% of the significant increase in audit fees following IFRS adoption is explained by IFRS task complexities. We recommend further research to ascertain the other factors that could have led to the significant increase in audit fees of DMBs. Lastly, given that the quality of financial reporting increased with IFRS adoption recommend that accountants, regulatory authorities, professional bodies and all other parties in financial reporting chain should deepen their knowledge of IFRS.
Keywords: Audit Fees, IFRS adoption costs, Money Deposit Banking, Nigeria