Prospects and Challenges of Financial Reporting in Nigeria
Michael Oseni, Olabamiji Ogunlade, Sunday Festus Olasupo, Ezekiel Olukayode Adeleke
The study examines the effectiveness of International Financial Reporting Standards (IFRS) on financial reporting in Nigeria. The study is based on secondary data and descriptive in nature. Thereafter, content analysis method was used to highlight legal, environmental, and cultural challenges peculiar to Nigeria. The findings show that standards used in developed nations are also being applied to corporate entities in Nigeria to give adequate information to all stakeholders in financial reporting. Nevertheless, the neglect of corporate governance practices had led to significant losses to nearly all the stakeholders. Therefore, the study recommends among other things that additional standards should be included in accounting reports like translating accounting reports into the three officially recognized indigenous languages in Nigeria and addressing information overload in the accounting report.