The Relevance of International Financial Reporting Standards on the Quality of Financial Reporting in Nigeria

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ABSTRACT

The aim of the study was to establish a relationship between the International Financial Reporting Standards and the quality of financial Reporting. The data required for this research work was basically the primary data, which was obtained through the use of questionnaire. Therefore, the research design used for this research work was the sample survey design. The population of this study was made up of the staff of the selected banks which was made up of male and female respondents from different levels particularly from the accounting and finance departments that have a direct dealing with financial reporting and financial statements.The sample size consists of 100 respondents from the organisation. The sampling technique used for this research work was the stratified sampling. The 5-point Likert Scale structured questionnaire was the fundamental instrument that was used for obtaining data for this research work and was validated by the researcher’s supervisor. The data obtained during the cause of the study was analyzed with the simple percentage, while Chi-square was used to test the hypotheses.  The study found that effective auditing controls financial impropriety of the organization, the code of corporate governance helps to ensure that audit is done in the interest of stockholders thereby boosting confidence, the independence and objectivity of audit report helps to boost confidence and auditors are now obliged to take a much strict approach to their clients. The study recommends that global adoption of IFRS and that Nigeria banks should embrace best corporate governance practices and that .Nigerian banking sector should embrace best corporate governance practices.

          TABLE OF CONTENTS

Title Page                                                                                                                                i

Inside Cover Page                                                                                                                  ii

Certification                                                                                                                            iii

Dedication                                                                                                                              iv

Acknowledgement                                                                                                                  v

Abstract                                                                                                                                  vi

Table of Content                                                                                                                     vii

             

CONTENTS                                                                                    PAGES

                                                                                                                  

 

CHAPTER 1:  INTRODUCTION

 

1.1   Background of the Study                                                                                                 1                                                                                                                                             

1.2   Statement of the Problem                                                                                                 3                                                                                                                                       

1.3   Aim and Objectives of the Study                                                                                    4                                                                                                                                       

1.4   Relevant Research Questions                                                                                           4                                                                                                                                                   

1.5   Relevant Research Hypotheses                                                                                        5                                                                                                                                       

1.6   Significance of the Study                                                                                                 5                                                                                                                                       

1.7   Scope of the Study                                                                                                           6                                                                                                                                    

1.8   Definition of Terms                                                                                                          6

References                                                                                                                 

                                                    

CHAPTER 2: LITERATURE REVIEW

 

2.1 Preamble                                                                                                                           9                                                                                                                                                         

2.2 Theoretical Framework of the Study                                                                                9                                                                                                                                             

2.3 Empirical Review of Previous Work in the Area of study                                              10                                

References                                                                                                                                                                        

CHAPTER 3: RESEARCH METHODOLOGY

 

3.1 Preamble                                                                                                                          39                                                                                                            

3.2   Research Design.                                                                                                            39                                                                                            

3.3 Population of the Study                                                                                                   39                                                                                            

3.4 Sampling, Procedure and Sample Size                                                                            40                                                        

3.5   Data Collection Instrument and Validation                                                                   40                                            

3.6 Method of Data Analysis                                                                                                40                                

3.7 Limitation of the Study                                                                                                   41

                       

References                                                                                                                       

 

CHAPTER 4: DATA PRESENTATION AND ANALYSIS

 

4.1       Preamble                                                                                                                     43                                                                                                                                                                  

4.2       Presentation of Data According to Research questions                                             43                               

4.3       Test of Hypotheses                                                                                                     51                                           

4.4       Discussion of findings                                                                                                55

 

References

 

CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS

 

5.1 Summary                                                                                                                            58      

                              

5.2 Conclusions                                                                                                                       59                                                                                                                                          

5.3 Recommendations                                                                                                            60                                                                                                                                          

Bibliography

                                                                                                                                               

Appendix                                                                                                               

                                                             LIST OF TABLES

 

Table 4.1.        Data presentation of respondents’ Demographic Characteristics                        43

 

Table 4.2: What is the impact of International Financial Reporting Standards on the quality of               financial statements?                                                                                                                     45

 

Table 4.3: What is the impact of financial reporting on the profitability and performance of banks in Nigeria?                                                                                                                                     47

 

Table 4.4: What is the relationship between financial reporting and shareholders’ wealth maximization?                                                                                                                               50

 

Table 4.5: Effective auditing controls financial impropriety of the organization.                        51

 

Table 4.6                     Contingency Table                                                                                     52

 

Table 4.7 Financial reporting significantly affects the profitability and performance of banks in Nigeria.                                                                                                                                          53

 

Table 4.8                     Contingency Table                                                                                    54