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IFRS Compliance Appraisal: Evidence from Nigeria and Ghana

Author

Listed:
  • Emma I. Okoye
  • Ugochukwu J. Nwoye

Abstract

t This study appraises the quality of compliance upheld by selected Nigerian and Ghanaian manufacturing companies to minimum disclosure requirements of IFRS during financial reporting. Hence, It determines whether any significant difference exists in the compliance quality of the post IFRS Financial Statements prepared in Nigeria and Ghana in their first five years of IFRS adoption. It is an empirical study that is descriptively designed to pave room for the use of the content analysis scoring system as the core instrument for data collection. A total of 44 manufacturing companies (22 companies each in Nigeria and Ghana) listed on the floors of the Nigerian and Ghana Stock Exchanges were purposively sampled and scored for quality compliance on a 4-point rating scale through her post IFRS compliant Financial Statements for the years 2007–2011 (Ghana) and 2012–2016 (Nigeria) respectively. Scores derived were however analyzed using the Mann Whitney U Test, and it was discovered that a significant difference exist in the compliance quality of post-IFRS Financial Statements prepared by public listed manufacturing companies in Nigeria and Ghana, with Nigeria having better IFRS disclosures compliance edge over Ghana. This implies that the regulatory approach to IFRS implementation in both countries apparently differs. The study however recommends that a more robust regulatory oversight on companies’ full compliance to IFRS disclosure requirements be upheld towards achieving a commendable level of comparison in both countries’ IFRS Financial Statements as expected. More so, companies’ consistent full compliance to IFRS requirements should hence be adopted as one of the perquisite for her continued listing by the Nigerian and Ghana Stock Exchanges.

Suggested Citation

  • Emma I. Okoye & Ugochukwu J. Nwoye, 2018. "IFRS Compliance Appraisal: Evidence from Nigeria and Ghana," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(4), pages 19-27, December.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:4:p:19-27
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    References listed on IDEAS

    as
    1. Akintola Owolabi & Francis O. Iyoha, 2012. "Adopting International Financial Reporting Standards (IFRS) in Africa: benefits, prospects and challenges," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 1(1), pages 77-86.
    2. Palea, Vera, 2013. "IAS/IFRS and Financial Reporting Quality: Lessons from the European Experience," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201330, University of Turin.
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    Cited by:

    1. Joseph Mbawuni, 2019. "Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(9), pages 1-29, September.

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    More about this item

    Keywords

    Financial Statements; full compliance; Ghana Stock Exchange; IFRS; Nigerian Stock Exchange; quality compliance;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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