scholarly journals THE IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS) ADOPTION ON KEY FINANCIAL RATIOS IN NIGERIA

2020 ◽  
Vol 8 (4) ◽  
pp. 289-300
Author(s):  
Adedoyin Isola Lawal ◽  
Ezekiel Oseni ◽  
Abiola A. Babajide ◽  
Bukola Lawal-Adedoyin ◽  
Faith Bonetipin
Keyword(s):  
Financial Reporting ◽  
Unit Root Test ◽  
Financial Statements ◽  
Substantial Effect ◽  
Least Square ◽  
Financial Ratios ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs Adoption ◽  
The Impact

Purpose: This study examined the effects of the adoption of the International Financial Reporting Standard (IFRS) on the quality of financial statements of agro-allied firms in Nigeria. Methodology: Battery of unit root test techniques and co-integration tests were deployed to examine the existence of long-run impact of relevance and reliability of financial reporting as provoked by IFRS adoption. The study made use of Panel Fully Modified Least Square techniques to examine the nature of the relationship between the Pre-IFRS and Post-IFRS adoption periods. Main Findings: The study noted that IFRS adoption has a substantial effect on the reliability and relevance of financial statements. Implications: The findings of this study help in shedding light on the impact of the IFRS on financial statements' reliability and relevance of listed agro-allied firms in Nigeria. Novelty: This study offers a unique understanding of the impact of IFRS adoption on financial ratios in Nigeria.

scholarly journals International Financial Reporting Standard (IFRS) Adoption and Its Impact on Financial Reporting: Evidence from Listed Nigeria Oil and Gas Companies

2020 ◽  
Vol 9 (1) ◽  
pp. 464
Author(s):  
Murtala Zakari
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Financial Statements ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Significance Level ◽  
Ifrs Adoption ◽  
Oil And Gas Companies ◽  
The Impact

This study seeks to investigate the impact of IFRS adoption on financial reporting in Nigeria Oil and Gas sector; whether it leads to significant financial reporting improvement in terms of value addition and quality; whether it reduces information asymmetry and increases investors’ confidence and understanding of the financial reports. To achieve this, data were collected from financial statements prepared using IFRS for the periods 2012-2016, and financial statements prepared using Nigeria GAAP for the periods 2007-2011, i.e. pre and post IFRS adoption in Nigeria for a period of 5years each. Analysis was conducted to test for the significance level of ROE, PAT/Sales, CA/CL, and debt-to-equity using mean, standard deviation of ratios, and T-test (paired) for both periods. The researcher found that Nigerian GAAP is more attractive and promising to shareholders than IFRS. In the same vein, IFRS is more attractive and promising to long term lenders than Nigerian GAAP. The study concludes that there is no significant financial reporting difference and quality as well as increased comparability and investors/shareholders return on investment, in adopting IFRS compare to the Nigerian GAAP by the listed Oil and Gas companies of Nigeria.

scholarly journals Dampak Adopsi IFRS terhadap Panjang Laporan Keuangan Perusahaan yang terdaftar di Bursa Efek Indonesia

2018 ◽  
Vol 5 (2) ◽  
pp. 170-181
Author(s):  
Muanas Muanas ◽  
Zahra Argadia Garini
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs Adoption ◽  
Before And After ◽  
Other Comprehensive Income ◽  
High Level

As a member of G-20 Forum, Indonesia starts to adopts the International Financial Reporting Standard (IFRS) as a requirement to fulfill the demands and needs of financial statements users. The adoption of international accounting standards into national accounting standards aim to create financial statements that have high level of credibility and accountability. IFRS requests the requirement of high level of disclosure items so the value of companies will increase, management will have high level of accountability to run the company, that allows changes on the financial statements, for example that can change the length of financial statements. The purpose of this study is to know the effect of IFRS adoption on the length of financial statements, and to know the content of financial statements before and after IFRS adoption. This study was conducted by dividing financial statements into two sections, which are major statements and notes to the financial statements.  The financial statements used in this study are 2008 and 2013. The sample was selected by purposive sampling method and analyzed using parametric and non-parametric tests. Results of this study show that major statements and notes to the financial statements experienced an increase in length after adopting IFRS. Notes to financial statements experiencing the most significant increase in length after adopting IFRS. On the major statements, the increase is caused by other comprehensive income account. While on the notes to the financial statements, increase is caused by implementation of  PSAK 1 which requires the high level of disclosures. The increase mainly occured in accounting policy on the financial statements.

scholarly journals The importance of the IFRS in India

2016 ◽  
Vol 12 (2) ◽  
pp. 46-53 ◽  
Author(s):  
Lious Ntoung Agbor Tabot ◽  
Ben C. Outman ◽  
Eva Masárova
Keyword(s):  
Stock Returns ◽  
Financial Reporting ◽  
Value Relevance ◽  
Accounting Information ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
Accounting Numbers ◽  
The Impact

In this article the authors study the impact of the mandatory International Financial Reporting Standard (IFRS) adoption has on the value relevance of accounting numbers based on a sample of 440 listed firms. The aim is to identify the effects of the mandatory IFRS adoption by relying on panel data gathered over the period 2002 to 2012 resulting in more than 4,840 firm-year observations. Two models of Panel regression (stock returns and price models) were employed. The main finding shows that the adoption of IFRS across the studied period results to some improvement in the value relevance of accounting information with the stock return model. With respect to the price models, our result shows that there was slight difference in the value relevance of accounting information after the mandatory IFR adoption across India listed firms.

scholarly journals International Financial Reporting Standard (IFRS) Adoption and Foreign Direct Investments (FDI): A Comparative Analysis of Nigeria and Ghana

2019 ◽  
pp. 1-10
Author(s):  
A. T. Ajibade ◽  
W. Okere ◽  
M. A. Isiaka ◽  
O. Mabinuori
Keyword(s):  
Financial Reporting ◽  
Least Square ◽  
Foreign Direct Investments ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Ifrs Adoption ◽  
The Relationship ◽  
Beneficial Outcome

This study examined the relationship between IFRS adoption and FDI in Nigeria and Ghana. Using ordinary least square as well as other diagnostic test, findings show a negative but insignificant relationship between IFRS adoption and FDI in Nigeria. Also, it was discovered that IFRS adoption has a positive and significant relationship in Ghana. Findings also show that IFRS adoption alone would not lead to FDI inflows and FDI is affected by other factors such as exchange rate, inflation and political instability. The study recommends that Effective execution of IFRS requires strategic planning and IFRS ought to be linked to an objective for it to have a beneficial outcome.

scholarly journals R&D Reporting Rule and Firm Efficiency

2021 ◽  
pp. 0148558X2110580
Author(s):  
Nilabhra Bhattacharya ◽  
Yoshie Saito ◽  
Ramgopal Venkataraman ◽  
Jeff Jiewei Yu
Keyword(s):  
Financial Reporting ◽  
Stochastic Frontier Analysis ◽  
Efficiency Improvement ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Exogenous Shock ◽  
Firm Efficiency ◽  
Frontier Analysis ◽  
Ifrs Adoption ◽  
The Impact

Critics opine that full expensing of research and development (R&D) depresses near-term profits and incentivizes myopic managers to under-invest in R&D, compromising firm efficiency. Advocates of the expensing rule argue that little rigorous research evidence supports the claimed adverse consequences. We examine the impact of the R&D expensing rule on firm efficiency by exploiting an exogenous shock: a shift in the accounting regime in Germany from full expensing to partial capitalization of R&D when it mandated International Financial Reporting Standard (IFRS) adoption in 2005. We employ Stochastic Frontier Analysis and Data Envelopment Analysis to estimate efficiency for the same German firms before and after the IFRS adoption. We find robust evidence of efficiency improvement in the post-period relative to the pre-period for German R&D firms that report R&D expenditures, and for both early adopters and timely adopters. We also document that financially constrained firms and firms experiencing rapid R&D growth prior to the IFRS adoption show greater efficiency improvement. Moreover, we conduct three falsification tests to make sure our results are not attributable to other accounting changes associated with the IFRS adoption, and find no efficiency improvement for the three control groups (German “no-R&D” sample, U.K. firms, and Australian firms), respectively. We conclude that the change in the R&D reporting rule is the likely catalyst for improvements in efficiency of German R&D firms.

IFRS Adoption and Value Relevance of Accounting Information: Evidence from a Developing Country

2018 ◽  
Vol 19 (6) ◽  
pp. 1416-1435 ◽  
Author(s):  
Habeeb Mohamed Nijam ◽  
Athambawa Jahfer
Keyword(s):  
Sri Lanka ◽  
Financial Reporting ◽  
Value Relevance ◽  
Accounting Information ◽  
Market Value ◽  
Annual Reports ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs Adoption ◽  
The Impact

The purpose of this study is to investigate the impact of International Financial Reporting Standard (IFRS) adoption on value relevance of accounting information in Sri Lanka by comparing value relevance of accounting information in pre- and post-IFRS adoption periods. This study employs Ohlson (1995, Contemporary Accounting Research, 11(2), 661–687) price regression model to explain value relevance of accounting information. It explains market value per share (MVPS) using earning per share (EPS) and book value of equity per share (BVEPS). The pre-IFRS period is designated as 2010 through to 2011, and the post-IFRS period is designated as 2012 through to 2014. The sample comprises 188 firms and 935 firm-year observations which nearly constitute to all firms listed in Colombo Stock Exchange except those not having at least two annual reports before and after the year 2012 and those having extreme and incomplete data. It is found that both BVEPS and EPS significantly and positively explain MVPS during the periods followed by IFRS adoption although EPS was not a significant predictor of MVPS prior to IFRS adoption. Pooled regression with data of both regimes, however, maintains that BVEPS and EPS significantly and positively explain MVPS. Although the overall predictive power of value relevance model improved in the years that followed IFRS adoption, value relevance of BVEPS has declined in post-IFRS implementation. However, the decline in value relevance of BVEPS perhaps has been compensated by improved quality of earning thereby making EPS as a significant predictor of market value of equity in the post-IFRS periods. These findings were not rebutted or changed even at the exclusion of the transitional year of 2012 from the sample. This study contributes to the extant value relevance literature and IFRS studies by investigating the impact of IFRS adoption in a developing economy and for the first time in Sri Lanka.

scholarly journals A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting

2016 ◽  
Vol 6 (4) ◽  
pp. 102-114 ◽  
Author(s):  
Newman Wadesango ◽  
Edmore Tasa ◽  
Khazamula Milondzo ◽  
Ongayi Vongai Wadesango
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Conclusive Evidence ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Ifrs Adoption ◽  
The Impact

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

Quality and quantity of FTSE-100 segmental information reporting

2019 ◽  
Vol 32 (3) ◽  
pp. 326-343 ◽  
Author(s):  
Ghassan H. Mardini ◽  
Sameh Ammar
Keyword(s):  
Financial Reporting ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Content Type ◽  
Information Reporting ◽  
Ifrs 8 ◽  
The Uk ◽  
The Impact

Purpose This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review (PIR) issued by international accounting standards board (IASB). This impact is examined in relation to quality and quantity as SIR dimensions represent, respectively, the level of reported items and segments. As a complement to this, the chief operating decision maker (CODM) identity is considered to understand the patterns of SIR dimensions. Design/methodology/approach The SIR of the UK financial times stock exchange 100 (FTSE-100) listed companies over the period 2013-2016 is the research’s scope. Several criteria were developed to ensure a representative research sample. A disclosure index approach was used facilitating the use of content analysis for data collection, which pertained to the dimensions of SIR published by the FTSE-100 following IFRS 8 PIR. Findings The IFRS 8 PIR has had several implications shaping the growing trend that is underpinned by the SIR dimensions published by FTSE-100 companies. First, the SIR quantity dimension positively corresponds over 2013-2016, but it still does not meet IASB’s demands. This, secondly, also applies to the quality dimension of SIR to uncover inconsistency with the existing knowledge being held regarding the introduction of IFRS 8. More specifically, the response of the FTSE-100 to mandatory and voluntary items seems to be in transition of substitution. Third, CODM’s identity was an insightful dimension in rationalising the understanding through the aforementioned dimensions. It is undertaken by boards of directors or executive committees and the case of the latter is associated with more disclose in relation to the CODM’s identity. Practical implications These findings reveal implications to: academics undertaking further research about IFRS 8 PIR to challenge or endorse this conclusion, using similar or alternative approaches; the stakeholders’ decision-making process; and policymakers to re-think the structure of mandatory and voluntary items. Originality/value This paper provides empirical evidence on the quality and quantity of SIR published by FTSE-100 companies following IFRS 8 PIR.

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