Challenges of Converging to IFRS in Nigeria

Abstract

This study expresses fears that the credibility crises suffered by financial statements of Nigerian firms may deepen in view of the flexibility that IFRS allows. Using Chi-square for the analysis of questionnaire, the study concludes that Nigerian companies should converge to IFRS in view of the fact that it will enhance better accountability and transparency and improve quality of reporting, despite its cumbersomeness and the initial anticipated problems. The study recommends that Nigeria should adopt IFRS but only for group accounts of listed companies while Nigerian GAAP should still be mandatory for individual company’s accounts of listed companies and optional for group accounts of non-listed companies as it is the practice with Germany.