Impediments In Adopting International Financial Reporting Standard In Nigeria

Impediments In Adopting International Financial Reporting Standard In Nigeria

Chapter One

Preface

Background To The Study

Couple of times back, what’s now known as International Financial Reporting Standard( IFRS) witnessed worldwide spread debate. still, moment scholars and experimenters are devoting significant time and interest on the subject matter, this can be traced to the demands of globalization.

According to Erahan and Beken( 2008), editorialized that the globalization of capital request requires a single global account reporting and exposure of set of norms.

moment, the need for a unified norms is adding in high demand by utmost economics in the world, arising from wide spread call by utmost realities for oversea capital, business combination including combinations and accession performing to growing number of foreign direct investment among others.

Although some observers have said that relinquishment of IFRS will allow for International Comparison of Financial Statement, that may lead to reduction in the cost of capital, increased trade, increase access to foreign finance, as well as increased position of cross border junction and accession performing to growing number of foreign direct investment among others.

Although some observers have said that relinquishment of IFRS will allow for transnational comparison of fiscal statement, that may lead to reduction in the cost of capital, increased trade, increase access to foreign finance, as well as increased position of cross border junction and accession conditioning among others( Houston and Reinstein, 2001). still, some manacle are perceived to accompany relinquishment of IFRS as Melancon, and Eliot( 2001) noted that notwithstanding the high quality of International Financial Reporting Standard( IFRS), there are so numerous impediments that may hind the relinquishment of IFRS in Nigeria, similar as complicated nature of particular norms IFRS( including fiscal instruments) and susceptible to varied interpretations.

This has tendencies of different countries applying International Financial Reporting Standard( IFRS) else for analogous deals.

presently, over one hundred countries have espoused International Financial Reporting Standard( IFRS) and it’s noted that by 2011 most countries of the world will either bear or at least permit( IFRS)( ICAN Seminar, 2009).

In light of the foregoing, this study is designed to assess the impediments or difficulties associated with International Financial Reporting with International Financial Reporting Standard( IFRS) relinquishment in Nigeria.

Statement Of Research Problem

There are impediments or problems involved in espousing International Financial Reporting norms( IFRS).

Ideal Of The Study

To find out the impediments in espousing( IFRS) International Financial Reporting norms in Nigeria.

Exploration Question

What are the impediments in espousing IFRS in Nigeria?

Thesis

There are problems impediments in the relinquishment of International Financial Reporting norms( IFRS) in Nigeria.

Significance Of The Study

The exploration work generally concerned with assaying the impediments or problems involved in espousing IFRS in Nigeria and to proffer a continuing result to these impediments.

Compass Of Study

The compass of the study was limited to the two( 2) civil ministries i.e. Federal Pay Office, Benin and Office of the Adjudicator- General for the Federation, Benin City because of the time limit and convenience.

Limitation Of Study

Some of the limitations to the study were;

Utmost repliers aren’t knowledgeable in IFRS

Indecorous stuffing of the questionnaire

Recovery of some of the questionnaire

Smallness of the sample size

Low response rate

Functional Description Of Terms

IFRS Means International Financial Reporting norms.

Globalization of capital request It means request where associations or commercial( s) attained loan installations at reduced cost and with ease.