International Financial Reporting Standard (IFRS) Adaptation in Nigeria: Challenges and Prospects

Abstract

The adoption of International Financial Reporting Standards (IFRSs) in Europe and around the world represents perhaps the most important accounting regulatory change in recent years. The use of IFRSs as a universal financial reporting language is gaining momentum across the globe as more countries are adopting IFRS or converging their local standards with it. Nigeria had set a road map towards the adoption of IFRS from January 2012.The main objective of this research is to survey literature and identify the challenges of International Financial Reporting Standards (IFRS) adoption and limitations faced by Nigeria in the process of implementing it. Nigeria has embraced IFRS in order to gain the benefits it offers; including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. In implementing IFRS Nigeria is facing challenges including the development of a legal and regulatory framework, awareness campaign, and training of personnel. Strengthening education and training at all levels of governance, establishment of an independent body to monitor, enforce, and advise on accounting and auditing standard, efficient capacity building programme to prepare the various stakeholders for the imminent transition and challenges are the key recommendations from the study.

Keywords: International Financial Reporting Standards, adoption, adaptation, challenges.