Expected Benefits of Implementing Global Accounting Standards by Nigerian Business Entities

Nyor, Terzungwe

doi:10.5539/ijbm.v7n15p98

Cited by 2 publications

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“…The pronouncement of the Regulator of accounting standards on the positive relationship between IFRS adoption and foreign investments, coupled with the role accounting standards, can play in attracting foreign investments, motivates this research. Nyor (2012) believes that if African countries can adopt IFRS, there would be enormous economic benefits in terms of foreign investments. Since financial statements will be more transparent and comparable globally, there would be a better inflow of FPI.…”

Section: Background To the Studymentioning

confidence: 99%

“…The popularity of IFRS in the last few years has grown tremendously and has become the global financial reporting benchmark for domestically listed companies in many countries (Nyor 2012).…”

Section: Gaap"mentioning

confidence: 99%

“…In the view of Nyor (2012), IFRS are principle-based accounting standards that emphasise a broader rule with multiple methods for the treatment of each item, while GAAP is rule-based.…”

Section: 7mentioning

confidence: 99%

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The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa

Omotoso

Schutte

Oberholzer

2021

South African Journal of Accounting Research

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1994 to 2015 on total foreign portfolio investments in liabilities (equity and debt) were collected.Panel data regression analysis incorporating pooled regression, fixed-effects, and random-effects models was estimated. Also, the generalised method of moment estimator was employed to address the problem of endogeneity, usually associated with panel data analysis and as a robustness check for the model. The logit regression model was used to examine the determinant factors of IFRS adoption.Various statistical tests were estimated, such as the diagnostic test, using the histogram and Jarque-Bera statistics, difference-in-difference (DID) test, the unit root test, and the cross-sectional dependence test. The Hausman's chi-square was estimated to determine the best alternative technique between the fixed-effects and random-effects models. Also the Arellano-Bond estimator autocorrelation 〈1〉 and 〈2〉 was used to evaluate the validity of the variable instruments in the model. Besides, the average marginal effect (AME) was estimated for the effect of each covariate on the result. Certain covariates were estimated as control variables in the model.The statistical results show a significant and positive effect of the adoption of IFRS on FPI inflows after the adoption and implementation of IFRS in adopting countries. Equally, the finding further indicates a significant difference in the volume of FPI inflows after the adoption of IFRS than before the adoption, in adopting countries. The statistical estimates also reveal a positive and significant effect of IFRS adoption on FPI in adopting countries, compare with non-adopting IFRS countries where it shows a negative and non-significant relationship. It shows that countries that adopted IFRS experience more inflows in FPI compare with the non-adopting countries in Africa.Furthermore, the logit regression results show that culture, the legal system, political system, investor protection, market capitalisation, and tax were found to be positively significant with the probability of adopting IFRS in the logistic model. This thesis, therefore, suggests that the adoption of IFRS is justified in the selected countries in Africa since the results indicated a positive and significant effect of IFRS adoption on FPI in these countries. Hence, substantiated the assumption of IFRS proponents that adoption will enhance the flow of FPI in adopting countries for economic development. Policies measure to monitor the activities of listed firms and to enforce compliance with IFRS rules and regulations are warranted.These policies would further enable IFRS adopting countries to enhance more flow of FPI.

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Section: Background To the Studymentioning

confidence: 99%

Section: Gaap"mentioning

confidence: 99%

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The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa

Omotoso

Schutte

Oberholzer

2021

South African Journal of Accounting Research

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“…Nyor,(2012), in his study recommended the adoption of the International Financial Reporting Standards by Nigerian companies in order for them to take advantage of the globalization effects [6]. …”

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Analysis of perceptions of auditors/chartered accountants’ on selected Indian accounting standards

Viswanathan

Joseph

Thomas³

et al. 2015

IJBAS

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<p>Indian accounting standards are not only principle based but also based on users’ perceived ethical notions on professional ethics and compliance with professional code of conduct that are issued by the Institute of Chartered Accountants of India (ICAI).Codes of conduct for accountants give guidelines for proper behavior in the profession. The present study attempts to understand the perceptions of practicing auditors and professional Chartered Accountants (CAs) on the Indian accounting Standards and adherence to the professional code of conduct issued by the ICAI. The study is based on a survey conducted among a sample of qualified CAs. On the basis of the findings, the study concluded that ethical accounting standards are fundamentally necessary for accountants to produce quality financial reports free from material misstatements.</p>

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Expected Benefits of Implementing Global Accounting Standards by Nigerian Business Entities

Cited by 2 publications

References 0 publications

The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa

The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa

Analysis of perceptions of auditors/chartered accountants’ on selected Indian accounting standards

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