IMPLEMENTATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), PROSPECTS AND CHALLENGES
CHAPTER ONE
INTRODUCTION
The International financial reporting standards (IFRS) adoption is already an -issue of global relevance among various countries of the world due to the quest for uniformity, reliability and comparability of financial statements of companies. The implementation of International Financial Reporting Standards (IFRS) in Nigeria like in many countries has prospects and challenges, thus Low level of public awareness by regulators and other stakeholders on the use of IFRS in Nigeria, Poor knowledge of IFRS procedures and implementation of the standards in Nigeria are some of the problems in which this research wants to measure.
1.2 Background to the Study International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standard board (IASB) that is becoming the global standard for the preparation and presentation of public company financial statement. Currently, there are thirteen IFRSs and 29 IASs that are used to drive businesses globally. In the same vein, there are 15 interpretations under the new IFRS. All these are expected to guide firms in the preparation of financial statements (Micheal.O, 2013) this end concluded that the global adoption of a single set of financial reporting standard will in no small measure enhance comparability and create an enabling environment for all investors to be able to compare effectively investment opportunities across the global market. It will be in the interest of the Nigerian. Okpala, K.E (2011) stated also that the adoption of the IFRS will ensure transparency, accountability and integrity in financial reporting necessary for addressing the crisis in the financial sector in Nigeria which was responsible for the Nigeria loss of the Foreign Direct Investment (FDI) in the oil and gas sector to countries such as Ghana that have begun oil production in commercial quantity and who are perceived to have better financial reporting standards in place. Nigeria still needs to brace up for the significant change in the financial reporting landscape that will be brought about by the full adoption of IFRS in Nigeria. In the conversion process, organization need to understand the effect on their financial statements especially income statement, equity and distributable profit. The conversion process will impact on management reporting, budgeting, accounting manuals, chart of accounts and bases of valuations.
IMPLEMENTATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), PROSPECTS AND CHALLENGES