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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
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    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.
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    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

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