COMPARATIVE ANALYSIS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) COMPLIANCE AMONG SUB-SECTORS OF LISTED COMPANIES IN NIGERIA
Adoption of IFRS has significantly led to greater consistency in recognition and measurement of accounting information but the burden of complying fully with the disclosure requirements is complex and impacting upon corporate financial reporting practices of listed firms across the globe. Many companies usually claim that their financial statements are prepared in accordance with IFRSs but the reality is different due to varying levels of compliance which have been attributed to the absence of “bright-line” rules coupled with the failure of auditors to express an opinion regarding the extent of IFRS compliance. These consequently affect the quality of financial information, limit the potential effect of IFRS and impair the ability of investors and other market participants from making rightful decisions among listed companies. These motivate the study to carry out a comparative analysis of IFRS compliance among various sub-sectors of listed companies in Nigeria, this will be achieved through investigation of the level of IFRS compliance and the extent to which IFRS compliance differs among various sub-sectors of listed companies in Nigeria. 522 annual reports of 87 listed companies in Nigeria from 2012 to 2017 for different sub-sectors were employed and analyzed using descriptive analysis and ANOVA to test mean difference. The findings of the study revealed that more than 70% (368 firms) of Nigerian listed companies achieved IFRS compliance score of below 49% while 27% (41 firms) achieved between 50% to 59% compliance score and only 2% (13 firms) achieved compliance score of above 60%. The overall compliance score was attributed to performance in IAS 8 and IFRS 7. The study also revealed differences existed in the level of IFRS compliance among the IFRS, Nigerian listed companies in various sub-sector. Therefore, the study recommends that the regulatory bodies need to strengthen their monitoring activities.
