Home » Accounting » EXAMINATION ON THE EXTENT OF COMPLIANCE TO INTERNATIONAL FINANCIAL REPORTING STA...
EXAMINATION ON THE EXTENT OF COMPLIANCE TO INTERNATIONAL FINANCIAL REPORTING STANDARD (A CASE STUDY OF WEMA BANK PLC)
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 65 pages | 1-5 chapters | Amount: ₦5,000 | 9 orders. | Marked useful: 8,913 times
INSTANT PROJECT MATERIAL DOWNLOADEXAMINATION ON THE EXTENT OF COMPLIANCE TO INTERNATIONAL FINANCIAL REPORTING STANDARD (A CASE STUDY OF WEMA BANK PLC)
CHAPTER ONE
INTRODUCTION
1.1Background of the study
The fact that users rely on financial reports when assessing economic decisions, in particular financial reports issued by public companies, required the establishment of standards to regulate the preparation of such statements to improve their reliability. Accounting standards have been developed in several countries to regulate accounting systems specific to their environment. In the overtime, the companies have grown and have expanded beyond the borders. The requirements for corporate capital have also increased, with new capital coming from international markets. Different information needs of users from national and international sources as well as difficulties in the comparability of degrees due to different standards have emerged. Due to the increasing integration of international markets, companies around the world need to work to match the activities of international companies (Beier, 2008). Tafara (2008) rightly stated that stakeholders and investors are no longer limited in their choice of companies and investment opportunities in order to find the best portfolio.
According to Choi and Meek (2005), a higher degree of comparability and quality of financial statements is required as international audiences become more widely known and unaware of the different national accounting standards in which financial statements are prepared. If investors and stakeholders can not gain a reasonable and transparent view of the selected companies, additional costs in the form of potential capital losses or investment opportunities will result in a lack of confidence in the companies.
As the forces of globalization encourage more and more countries to open their doors to foreign investment, and as companies expand beyond their borders, public and private companies are increasingly recognizing the benefits of globalization. Uniform financial reporting system supported by globally recognized strict accounting standards.
Harmonization efforts in 1973 led to the establishment of the International Accounting Standards Committee (IASC), which published a series of standards called International Accounting Standards (IAS). Since April 2001, the International Accounting Standards Board (IASB) has taken over the responsibilities of its predecessor, the IASC, in the definition of accounting standards in order to make the standards set binding for all members. , The IASB has adopted all standards issued by the IASC, which continue to be referred to as IAS. However, the new standards would be published as a series called International Financial Reporting Standards (IFRS). The globally recognized and long-awaited accounting standard has been a success with the IASB's development of IFRSs, with more than 120 countries converting their standards into IFRS (Institute of Chartered Accountants England and Wales, 2010).
1.2 Problem statement
Nigeria adopted IFRSs instead of the previous national accounting standards (ANAN) as of January 1, 2007 as part of its efforts to promote accelerated private sector growth. ). The Board of Directors of the Institute of Chartered Accountants of Nigeria (ICAN) officially passed its adoption on January 23, 2007, committing all listed companies, public bodies, banks and insurance companies to IFRS on December 31, 2007 and others. Entities have been given an additional transitional period of two years (United Nations, 2007). Currently, Nigeria is one of 15 countries in Africa, with countries such as Botswana, Egypt, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Sierra Leone, South Africa, Tanzania, Swaziland and Uganda. IFRS (Zori 2011, PricewaterhouseCoopers 2010).
However, empirical studies by Street and Gray (2001) and Glaum and Street (2003) have found that companies in their annual reports have often claimed to fully comply with IFRS, although in reality this is the case material differences to IFRSs. Similarly, the International Federation of Accountants (IFAC) found that accountants confirm that companies comply with IAS when accounting policies and ratings state otherwise (Cairns, 1997). In this context, the study attempted to determine the degree of compliance with IFRS for all companies listed on the Nigerian Stock Exchange (NSE) and to identify the drivers of IFRS compliance and the differences between them. if applicable, between the types in terms of their compliance with IFRS.
1.3 Purpose of the study
The purpose of the study is the examination on the extent of compliance to International Financial Reporting Standard in WEMA Bank PLC. Specifically the study will;
-
Examine the extent of compliance with IFRS by WEMA bank plc
-
to determine the factors influencing IFRSs compliance
-
to examine if there exist any differences, between types of industry with regard to their compliance with IFRSs.
1.4 Significance of the study
The study aims to help the public sector take a comprehensive approach to accounting standards and IFRS. The study will also be of interest to public universities, higher education institutions, research institutes and individual researchers interested in accounting standards and will use the results for further research. This study will encourage researchers to identify the effectiveness and efficiency of the sector. The research will help individual bankin industry understand their position relative to the standard of their financial report.
-
Study hypothesis
-
The study hypothesis is:
-
HO1: there is no compliance of IFRS by WEMA bank plc
-
HO2: there is no significant differences, between types of industry with regard to their compliance with IFRSs.
.
-
Scope and Limitations of the Study
-
The study scope is limited the examination on the extent of compliance to International Financial Reporting Standard in WEMA Bank PLC. Limitation faced by the research was limited time and financial constraint
-
Definition of Basic terminologies
-
Corporate Size: It is the size of a firm irrespective of the way it is measured (e.g., total assets, sales turnover, and number of shares) is a variable that can explain to a reasonable extent, the quality of firms disclosures.
Profitability: Profitability is the degree to which a business or activity yields profit or financial gain.
Leverage: leverage is the the ratio of a company's loan capital (debt) to the value of its ordinary shares (equity); gearing.
This material content is developed to serve as a GUIDE for students to conduct academic research
DOWNLOAD THIS PROJECT MATERIAL NOW!
Reference(s):
REFERENCES Ahmed, K., & Nicholas, D. (1994). The impact of non-financial company characteristics on mandatory disclosure compliance in developing countries: The case of Bangladesh. International Journal of Accounting, 3(1), 183–203. Cairns, D. (1997). International Federation of Accountants: 20 years on. World Accounting Report (October). Cairns, D. (1999). The international accounting standards survey 1999: An assessment of the use of IASS by companies, national standard setting bodies, regulators and stock exchanges. London: LLP Professional Publishing. Chau, G. K., & Gray, S. J. (2002). Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore. International Journal of accounting, 37(2), 247–265. http://dx.doi.org/10.1016/S0020-7063(02)00153-X Glaum, M., & Street, D. L. (2003). Compliance with disclosure requirements of Germany’s New Market: IAS versus US GAAP. Journal of International Financial Management and Accounting, 14(1), 64–100. http://dx.doi.org/10.1111/1467-646X.00090 Holt, G. (2010). IFRS for SMEs. Retrieved June 5, 2011, from http://www.accaglobal.com Inchausti, B. G. (1997). The influence of company characteristics and accounting regulation on information disclosed by Spanish firms. European Accounting Review, 6(1), 45–68.Methodology: get complete material to enable
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
THE IMPACT OF FINANCIAL LITERACY ON THE PERFORMANCE OF SMALL SCALE ENTERPRISES IN CAMEROON
CHAPTER ONE INTRODUCTION 1.1 Background to the Study Small scale enterprises' (SSEs) contribution to the national economy should not be undervalued...More »
Item Type: Project Material | 54 pages | 1,371 engagements |
- 2.
THE EFFECT OF GOOD RECORD MANAGEMENT IN ORGANIZATIONAL PERFORMANCE IN CAMEROON
CHAPTER ONE INTRODUCTION Background of the study Since time immemorial, information has been considered an essential resource for all types of orga...More »
Item Type: Project Material | 54 pages | 640 engagements |
- 3.
A STUDY ON THE IMPLICATIONS OF ETHICS IN FINANCIAL REPORTING ON MONEY DEPOSIT BANKS IN LAGOS
CHAPTER ONE INTRODUCTION 1.1 Background of the Study The idea that an entity's financial statements are subject to a set of rules dictated by estab...More »
Item Type: Project Material | 54 pages | 749 engagements |
- 4.
AN APPRAISAL OF GLOBAL HEALTH INITIATIVE IN RESPONSE TO PREVENTION TO PANDEMIC DISEASE IN NORTH WEST...
CHAPTER ONE INTRODUCTION Background of the study The Global Health Initiative (GHI) aims to enhance the effectiveness and influence of all U.S. for...More »
Item Type: Assignment | 54 pages | 1,036 engagements |
- 5.
THE ROLE OF FINANCIAL ANALYSIS IN MANAGEMENT CONTROL
THE ROLE OF FINANCIAL ANALYSIS IN MANAGEMENT CONTROL CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Financial analysis is the process of revi...More »
Item Type: Project Material | 60 pages | 0 engagements |
- 6.
THE ROLE OF AUDITORS IN A DEPRESSED ECONOMY (A CASE STUDY OF SELECTED BANKS)
THE ROLE OF AUDITORS IN A DEPRESSED ECONOMY (A CASE STUDY OF SELECTED BANKS) CHAPTER ONE 1.0 INTRODUCTION In the 60’s especially before the civil wa...More »
Item Type: Project Material | 53 pages | 2,571 engagements |