IDEAS home Printed from https://ideas.repec.org/a/khe/scajes/v4y2018i3p177-186.html
   My bibliography  Save this article

Integrity Trend Assessment of Pre and Post IFRS financial disclosures in Nigeria

Author

Listed:
  • Ugochukwu J. Nwoye
  • Emma I. Okoye

Abstract

This study evaluates the pre and post IFRS financial disclosures of selected manufacturing companies in Nigeria. It intends to determine whether the integrity scores of selected manufacturing companies’ financial disclosures in their pre and post IFRS financial reporting regimes of Nigeria differ significantly. It is an empirical study that adopts the causal comparative research design for the successful investigation of the two research questions raised in the study. Thus, it depends solely on secondary sources of data such as Annual reports and Audited Accounts of selected manufacturing companies in Nigeria for the years 2006- 2016. A total of 50 manufacturing companies listed on the floor of the Nigerian Stock Exchange were purposively sampled. Integrity scores obtained after relevant computations were executed using the M-Score model were however subjected to further test using the Mann Whitney U Test. Result of the analysis carried out showed that equivalent but sensitive magnitude of questionable financial disclosures were noted in the pre and post IFRS Financial Statements of the Nigerian manufacturing companies evaluated. It also found out that the integrity scores of pre-IFRS and post-IFRS financial disclosures of the affected manufacturing companies in Nigeria do not differ significantly. There is then the need for users of financial information to assure themselves that the Financial Statements they are relying on are free from questionable financial disclosures. It was thus recommended that a balance should be struck by users between companies’ compliance quality to minimum disclosure requirements of IFRS and the integrity status maintained by such financial disclosures in the Financial Statements.

Suggested Citation

  • Ugochukwu J. Nwoye & Emma I. Okoye, 2018. "Integrity Trend Assessment of Pre and Post IFRS financial disclosures in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 177-186, September.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:3:p:177-186
    as

    Download full text from publisher

    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_198.pdf
    Download Restriction: no
    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_198.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erb, Carsten & Pelger, Christoph, 2015. "“Twisting words”? A study of the construction and reconstruction of reliability in financial reporting standard-setting," Accounting, Organizations and Society, Elsevier, vol. 40(C), pages 13-40.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Ying & Andrew, Jane, 2022. "Financialisation and the Conceptual Framework: An update," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    2. Jérémy Eydieux & Stéphanie Tillement & Benoît Journé, 2020. "A pragmatist approach to audit practices: two cases of technical dialog from nuclear risk governance in France," Post-Print halshs-03721410, HAL.
    3. Cascino, Stefano & Clatworthy, Mark A. & Osma, Beatriz Garcia & Gassen, Joachim & Imam, Shahed, 2021. "The usefulness of financial accounting information: evidence from the field," LSE Research Online Documents on Economics 107569, London School of Economics and Political Science, LSE Library.
    4. Roberts, John & Wang, Timothy, 2019. "Faithful representation as an ‘objective mirage’: A Saussurean analysis of accounting and its participation in the financial crisis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 65(C).
    5. Christoph Kuhner & Christoph Pelger, 2015. "On the Relationship of Stewardship and Valuation—An Analytical Viewpoint," Abacus, Accounting Foundation, University of Sydney, vol. 51(3), pages 379-411, September.
    6. Mantzari, Elisavet & Georgiou, Omiros, 2019. "Ideological hegemony and consent to IFRS: Insights from practitioners in Greece," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 59(C), pages 70-93.
    7. Christoph Pelger & Nicole Spieß, 2017. "On the IASB’s construction of legitimacy – the case of the agenda consultation project," Accounting and Business Research, Taylor & Francis Journals, vol. 47(1), pages 64-90, January.
    8. Kettunen, Jaana, 2017. "Interlingual translation of the International Financial Reporting Standards as institutional work," Accounting, Organizations and Society, Elsevier, vol. 56(C), pages 38-54.
    9. Stenka, Renata & Jaworska, Sylvia, 2019. "The use of made-up users," Accounting, Organizations and Society, Elsevier, vol. 78(C).
    10. Christian Blecher, 2019. "The influence of uncertainty on the standard-setting decision between fair value and historical cost accounting under asymmetric information," Review of Quantitative Finance and Accounting, Springer, vol. 53(1), pages 47-72, July.
    11. Spears, Taylor C., 2018. "The Price of an Uncertain Promise: Fair Value Accounting and the Shaping of Bank Counterparty Risk Valuation Practices," SocArXiv kcja3, Center for Open Science.
    12. Pantic, B., 2016. "Comparability of financial reports: A literature review of most recent studies," Working Papers 6451, Graduate School of Management, St. Petersburg State University.
    13. Himick, Darlene & Brivot, Marion, 2018. "Carriers of ideas in accounting standard-setting and financialization: The role of epistemic communities," Accounting, Organizations and Society, Elsevier, vol. 66(C), pages 29-44.
    14. Pucci, Richard & Skærbæk, Peter, 2020. "The co-performation of financial economics in accounting standard-setting: A study of the translation of the expected credit loss model in IFRS 9," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    15. Huikku, Jari & Mouritsen, Jan & Silvola, Hanna, 2017. "Relative reliability and the recognisable firm: Calculating goodwill impairment value," Accounting, Organizations and Society, Elsevier, vol. 56(C), pages 68-83.
    16. Jérémy Eydieux & Stéphanie Tillement & Benoît Journé, 2017. "A pragmatist approach of audit practices : safety demonstration and safety assessment through technical dialogue," Post-Print hal-01558978, HAL.
    17. Durocher, Sylvain & Georgiou, Omiros, 2022. "Framing accounting for goodwill: Intractable controversies between users and standard setters," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 89(C).

    More about this item

    Keywords

    Financial disclosures; financial statements; IFRS; Integrity Score; M-Score model; Pre and Post IFRS reporting regimes;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:khe:scajes:v:4:y:2018:i:3:p:177-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adi Sava (email available below). General contact details of provider: https://edirc.repec.org/data/ffucdro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.