Search site. Toggle navigation. All Related. See Legal for more information. DTTL also referred to as "Deloitte Global" and each of its member firms are legally separate and independent entities. On the national level many government and tax authorities want a global accounting standards to regulate and tax businesses that operate within their countries. This is geared towards the informational and contracting needs of the key parties in the economy and its role in corporate governance and the capital market.
Since the accounting system is complementary to other elements in the institutional framework, a fit between them is likely what result in different accounting system and infrastructural regimes across countries Obazee, This is because accounting and reporting represents approximately a quarter of conversion efforts.
Other areas include system changes for capturing and reporting data, re - appraising the tax cycle planning, provision, compliance and controversy , aligning of internal and external reporting and ensuring changes in internal audit plans.
It is also important to note that the impact of IFRS accounting policies decisions of a parent on the subsidiary, data capture for accounting and management reporting, availability of technical resources, acquisitions and dispositions, executive compensation calculations and the basis of incentive pay, debt covenants and potential impact of IFRS - reported results, etc were considered before arriving at the roadmap.
The Roadmap for the adoption the adoption is outline thus; It is believed that it will be in best interest of the nation to adopt IFRS. A phased transition over a period of Three years is recommended. This is anchored on the understanding that the nation will follow the milestones and timelines as enunciated above and explained hereunder.
It is pertinent to state here that the transition within this earliest possible period of effective and meaningful adoption may be derailed if any of the milestones and timelines is ignored. The phases are as follows: It is believed that it will be in best interest of the nation to adopt IFRS.
The phases are as follows: Phase 1: Publicly Listed Entities and Significant Public Interest Entities This means government business entities, all entities that have their equities or debt instruments listed and traded in the public markets a domestic or foreign Stock Exchange or an over-the- counter markets. Transition date for SPEs begins , with a reporting date of Transition begins by raising awareness to educate both the users and preparers of IFRS financial statements, followed by planning, training and analyzing the impact of IFRS adoption on people, systems and processes and on business of firms.
By the year SPEs are required prepares quarterly report using IFRS rules, follow audit procedures and investor relations to educate analysts, investors and manage external stakeholders.
By the year , SPEs would identify the loopholes in the existing system and processes by ensuring compliance and monitoring. Phase 2: Other Public Interest Entities This refers to those entities, other than listed entities unquoted, private companies which are of significant public interest because of their nature of business, size, number of employees or their corporate status which requires wide range of stakeholders.
Examples of entities meeting these criteria are large not-for-profit entities such as Charities and Pension funds. Transition date for PIEs begins by the year with a reporting date of By which period opening SFP and comparative figures are expected to be prepared. Phase 3: Small and Medium-sized Entities SMEs Small and Medium-sized Entities SMEs refers to entities that may not have public accountability and their debt or equity instruments are not traded in a public market: they are not in the process of issuing such instruments for trading in a public market, they do not hold assets in fiduciary capacity for a broad group of outsiders as one of their primary businesses, the amount of their annual turnover is not more than N million or such amount as may be fixed by the Corporate Affairs Commission their total assets value is not more than N million or such amount as may be fixed by the Corporate Affairs Commission, no Board members are foreigners, no members are a government or a government corporation or agency or its nominee, the directors among them hold not less than 51 percent of its equity share capital.
Transition date for SMEs begins by with a reporting date of It will also facilitate easier international mobility of professional staffs across national boundaries.
Odia University of Benin, Nigeria. DOI: Current Special Offers. No Current Special Offers. It also investigate into the impact of effect of the adoption of IFRS on accounting figures and ratios in the financial statements of 50 companies quoted in the Nigerian Stock Exchange.
The determinants considered include firm's characteristics firm size, operating cash flow, leverage, turnover, growth in turnover, profitability, liquidity and earnings quality and corporate governance variables board size, board independence and audit type. The data were obtained from the annual reports of companies listed in the Nigerian Stock Exchange between and and was analyzed using the ordinary least square OLS and logistic regression which were used to test for determinants of IFRS adoption while the independent t-test was used to examine the financial statement effects.
With regard to the determinants, the empirical result indicates only profitability and earnings quality have significant but negative association with IFRS adoption. Moreover, IFRS adoption has significant effect on the return on equity.
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