JORIND (9)1 06, 2011. ISSN 1596-8303. www.transcampus.org/journals. www.ajol.info/journals/jorind
THE CHALLENGES OF ADOPTING INTERNATIONAL FINANCIAL REVEALING SYSTEM IN NIGERIA Anthony O. Garuba Department of Accounting and Finance, European Delta College or university, Oghara, and Pat Donwa Department of Accounting, School of Benin, Benin Metropolis E-mail: [email protected] com Subjective Nigeria will probably adopt Worldwide Financial Credit reporting Standard (IFRS) from very first January 2012. Globalization and Information and Communication Technology (ICT) provides reduced the world to a global village. This has given rise to the continuous incorporation of the world economic system and capital markets containing in turn given rise to increase in the interdependence of international economic markets. Due to this, there may be increased range of motion of capital across limitations of the globe. Therefore , in order to ensure and sustain investorsВ’ confidence inside the capital market, the issue of corporate and business governance has been taken to the front burner because that is the only method corporate financial reporting is visible to be translucent. However , to work in the global financial markets you have the urgent need for a standard global financial revealing, hence the majority of countries have got embraced IFRS either by adoption, variation or concurrence. It is therefore, the intention on this paper to critically take a look at the re-homing of IFRS, its challenges and to proffer solutions that could ensure smooth transition in Nigeria. Keywords: Investors, foreign standards, the positive effect and financial statements.
Intro The maneuver towards producing an acceptable global high-quality economical reporting criteria started in 1973 when the International Accounting Standards Committee (IASC) was formed simply by 16 professional accounting bodies from Canada, United States of America, British, Germany, Italy, Netherlands, Australia, Mexico and Japan. The IASC was reorganized into the International Accounting Standards Panels (IASB) in 2001. As of yet, the IASB has developed accounting standards and related Interpretations that are each known as the Foreign Financial Confirming Standards (IFRS). According to Adam (2009) В“ the criteria set by IASB began to gain dominance when the
International Organization of Securities Commissions (IOSCO) in 2000 recommended the after that IASC requirements. This was additional boosted the moment in 2002; the European Commission permitted a rules requiring that listed firms in EUROPEAN countries make consolidated economical statements in accordance with IFRS. The dominance of IFRS even more improved in September 2002, when the Combined StatesВ’. Monetary Accounting Standards Board (FASB) and IASB signed the Norwalk Agreement. By this arrangement, the physiques undertook to work carefully to develop good quality compatible accounting standards that may be used for both equally domestic and crossborder economic reporting. These bodies include
JORIND (9)1 Summer, 2011. ISSN 1596-8303. www.transcampus.org/journals. www.ajol.info/journals/jorind
up to now met all their commitment and they are far advanced in the IFRS-US Generally Approved Accounting Concepts, GAAP, concurrence. В” Additional countries especially the developing ones who tend not to want to be left out took a cue through the worldВ’s main economies to either take up, adapt or perhaps converge the IFRS. Notable among these kinds of countries are Sierra Leone, Malawi, Nyimba, zambia, Kenya, and Ghana. Countries use several approaches in adopting IFRS based on all their need and ability to adopt. For example , in countries like United States, Canada, Japan and India, IFRS financial transactions are not permitted for listing without reconciliation to community GAAP. However , significant profits have been manufactured in these countries to bring home-based standards in line with IFRS. Whilst in the European Union (EU), listed businesses are required to work with IFRS in preparing consolidated financial claims. It therefore, implies that a listed company...
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