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 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 PROBLEMS OF LEGAL AND EVALUATION OF THE OBJECTS OF SUBSOIL USAGE

2017 ◽  
Vol 1 ◽  
pp. 216
Author(s):  
Natalia Pashkevich ◽  
Tatyana Tarabarinova
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Mineral Resources ◽  
Geological Exploration ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Exploration Process ◽  
Normative Documents ◽  
Legislative Framework ◽  
Oil And Gas Companies

Evaluation of the objects in the mineral resources sector depend on type of the legislative framework for the different stages of exploration process. The article covers to problems of legal and evaluation to objects of subsoil usage according to different stages of geological exploration in International Financial Reporting Standard 6 «Exploration for and Evaluation of Mineral Resources», Russian Financial Standard 24/2011 « Cost accounting of the mineral resources deployment», US GAAP and other normative documents. The results present the possibility of capitalizing mineral reserves as assets in mining oil and gas companies.

scholarly journals PROCEDURES FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

2021 ◽  
pp. 217-226
Author(s):  
Лэйля Камаровна Мусипова
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Business Structures ◽  
Performance Results

Помимо обычной финансовой отчетности некоторые предприятия Казахстана обязаны формировать и предоставлять консолидированную финансовую отчетность согласно требованиям международных стандартов финансовой отчетности. Статья посвящена особенностям составления и представления консолидированной отчетности в соответствии с международным стандартом финансовой отчетности 10 (IFRS) «Консолидированная финансовая отчетность». Целью исследования является рассмотреть понятие консолидированной отчетности, требования по ее составлению, порядок формирования и провести анализ потребность в составлении и представлении консолидированной финансовой отчетности. Наряду с этим представлена практика полной консолидации на условном примере с учетом требований международных стандартов финансовой отчетности, а также проблемы, с которыми сталкиваются представители бизнес-структур при формировании и представлении консолидированной финансовой отчетности. Научная новизна полученных результатов заключается в разработке приемов и методов составления и совершенствования консолидированной отчетности, которая позволит преодолеть сложности при формировании результатов деятельности за определенный отчетный период группы в целом. Along with the standard financial reports, some enterprises in Kazakhstan are required to form and submit consolidated financial reports in accordance with the requirements of international financial reporting standards. The article is devoted to the peculiarities of creating and presenting consolidated financial reports in accordance with International Financial Reporting Standard 10 (IFRS) «Consolidated Financial Reporting». The aim of the study is to examine the concept of consolidated financial statements, the requirements for its formation, and the analysis of the need for the preparation and presentation of consolidated financial statements. In addition, the practice of full consolidation was studied and presented on the example of all the consolidation requirements of IFRS 10 (IFRS) «Consolidated Financial Reporting», as well as various issues business structures deal with during the process of formation and presentation of consolidated financial statements. The scientific novelty of the results obtained is the development of techniques and methods for the preparation and improvement of consolidated reporting, which makes it possible to overcome the complexity of the formation of performance results for a certain reporting period of the group as a whole.

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 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 Pengaruh Implementasi Asi International Financial Reporting Standard dalam Rangka Indeks Gray Leverage terhadap Pengungkapan Laporan Keuangan

2018 ◽  
Vol 5 (2) ◽  
pp. 164-169
Author(s):  
Desi Efrianti ◽  
Yanto .
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Financial Disclosure ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Financial Reports

Disclosure of financial statements is a mean of delivering information by the company’s internal to stakeholders outside of the company. On this globalization era, IASC (International Accounting Standard Committee) tries to create a custom standard for all in order to financial statement can be understood by all users in different countries, and so the IFRS (International Financial Reporting Standard) is published. It certainly brings a big impact on accounting study in Indonesia. One of those is about convergence of IFRS into PSAK as base of financial reporting as one form of disclosure to stakeholders outside of the company. This study was conducted to obtain empirical evidence about the effect of the implementation IFRS on the disclosure of financial statements as measured by leverage in this case the Gray index. The populations in this study are all listed banks in Indonesia Stock Exchange for the period of 2009-2014. Sample was 30 banking firms selected using purposive sampling method with predetermined criteria. Independent variable is in the form of leverage Gray index. Analysis used in this study is a descriptive analysis and simple linear regression analysis with SPSS as tool for calculation. The result showed the implementation of IFRS in the leverage Gray index has no effect on financial disclosure. Conclusions of the research are implementation of IFRS itself has effect on the financial disclosure but Gray index leverage has no significant effect under the IFRS standards. Result from t-test value is -0.122 and smaller than t-table value of 2.048. Thus, the variable of Gray index leverage is not recommended to be used to measure the width of financial reports disclosures under the standards of IFRS. There are still many aspects to be studied to determine the effect of accounting standards using other representations of company characteristics.

scholarly journals International financial reporting standards (IFRS) adoption and oil & gas companies performance in Nigeria

2017 ◽  
Vol 5 (2) ◽  
pp. 146 ◽  
Author(s):  
Aminu Abdullahi ◽  
Musa Yelwa Abubakar ◽  
Sunusi Sa’ Ad Ahmad
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Reporting Quality ◽  
Easy Access ◽  
Debt Ratio ◽  
Return On Equity ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
Oil And Gas Companies

This study investigates the effect of IFRS adoption on the performance of oil and gas marketing companies in Nigeria. The study utilise financial statements of a sample of eight (8) oil and gas companies operating in the country. These companies were purposively selected due to availability of data. Firms’ performance was proxied by Profit Margin (PM), Return on Assets (ROA) and Return on Equity (ROE) ratios and were considered as dependent variables to be determined by reporting regime (RR) as independent variable. While Current Ratio (CR), quick Test (QT), Total Debt Ratio (TDR) Earnings per Share (EPS) and Equity Debt Ratio (EDR) are use as control variables. The ratios were computed and compared for 4 years (2010 to 2011) before mandatory IFRS adoption and 2012 to 2013 often mandatory adoption OLS, regression with help of eviews 9 was employed for the analysis. The study reveals IFRS adoption has not improved the performance of oil and gas companies in Nigeria. The paper recommended that, oil and gas companies should continue to comply with provisions of IFRS as it will improve their reporting quality which may also improve their performance as result of more investment flow, easy access to capital and comparability.

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