Welcome to Open Science
Contact Us
Home Books Journals Submission Open Science Join Us News
The Contribution of Fair Value Accounting on Corporate Financial Reporting in Nigeria
Current Issue
Volume 2, 2014
Issue 1 (February)
Pages: 1-8   |   Vol. 2, No. 1, February 2014   |   Follow on         
Paper in PDF Downloads: 72   Since Aug. 28, 2015 Views: 1839   Since Aug. 28, 2015
Authors
[1]
Ijeoma, N. B., Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
Abstract
This study examined the contribution of fair value accounting on corporate financial reporting in Nigeria. The objective of the study is to ascertain the level and contribution of fair value accounting on providing useful information for investor’s in Nigeria, to find out if Nigeria capital market structure pose a challenge to implementation of fair value accounting, and to determine if full fair value of financial instruments fulfils the aim of performance reporting. The method of data collection used in this study was field survey method involving the use of questionnaire administered to 562 samples. The method of data analysis was the Kruskal-Wallis rank sum test statistic. From the result of the analysis, it was found that the implementation of fair Value Accounting provides more useful Information to Investors than historical cost reporting. Also, it was observed that the Nigeria capital market structure would pose a challenge to implementation of fair value accounting. It was equally found that the full fair value of financial instruments fulfils the aim of performance reporting. The determination of the overall growth of most economy depends on how efficient and effective the stock market is, and in the Nigeria case there are still lots of challenges that have hindered the Nigerian Capital market from attaining international status and these could pose a challenge to implementation of fair value accounting in Nigerian financial system.
Keywords
Capital, Survey, Information, Financial Instrument, Economy, Stock Market
Reference
[1]
Procházka, D., “The Role of Fair Value Measurement in the Recent Financial Crunch.” Prague Economic Papers, 1, 2011: 71-88.
[2]
American Bankers Association. 2009. “Fair Value and Mark to Market Accounting.” http://www.aba.com/Issues/Issues_FairValue.htm
[3]
Ball, R., “International Financial Reporting Standard (IFRS): Pros and Cons for Investors” Accounting and Business Research international Accounting Policy Forum, 2006: 5-27.
[4]
Song, Chang J., Thomas, Wayne B., Yi, Han, “Value Relevance of FAS 157 Fair Value Hierarchy Information and the Impact on Corporate Governance Mechanisms.” The Accounting Review, July 2010.
[5]
Barth, Mary E. and Landsman, Wayne R., “How Did Financial Reporting Contribute to the Crisis?” European Accounting Review, July 2010.
[6]
Landsman, Wayne R. “Is Fair Value Accounting Information Relevant and Reliable? Evidence from Capital Market Research.” International Accounting Policy Forum, 2007.
[7]
Hope, O. K, Jin, J. E and Kang, T., “Empirical Evidence on Jurisdictions That Adopt IFRS” Journal of International Accounting Research, 2006, 5(2): 1-20
[8]
Ament, J., “The Challenge of Fair Value Reporting to the Financial Community.” Paper presented at the 17th Annual Conference of the American Society of Business and Behavioral Sciences, February 2010.
[9]
Lefebvre, R., Simonova, E. and Scarlat, M., “Fair Value Accounting: The Road to be Most Travelled, Ontario.” Certified General Accountants Association of Ontario, 2009.
[10]
Pacter, P.,(2007) “Fair value under IFRS: Issues for developing countries and SMEs, in The Routledge Companion to Fair Value and Financial Reporting,(ed).” Walton, P, London: Routledge, 2007: 350-369.
[11]
Okafor, C. and Ogiedu, K. O., “Perceptions of Fair Value Accounting: Evidence from Nigeria, JORIND, 10 (3), December, 2012: 417-432.
[12]
www.transcampus.org./journals, www.ajol.info/journals/jorind
[13]
Chea, A. C., “Fair Value Accounting: Its Impacts on Financial Reporting and How It Can Be Enhanced to Provide More Clarity and Reliability of Information for User of Financial Statements. International Journal of Business and Social Science, 2011; 2(20): 12-19.
[14]
Obazee, “Practical Implementation issues of International Financial Reporting Standard in Nigeria – Fair Value Measurement as a challenging matter.” A Manuscript to Nigeria Accounting Standard Board Nnamdi Azikiwe University, Awka, 2009.
[15]
Ryan, et al. “Reporting fair value interest and value changes on financial instruments”. Accounting Horizons, 2002; 16, 259-268
[16]
Power, M., “Fair value accounting, financial economics and the transformation of reliability”. Accounting and Business Research, 2010; 40, 197-211.
[17]
Wallison, P. J. “Fixing Fair Value Accounting”. Paris, OECD Accrual Accounting Symposium, 2 March 2009,
[18]
[on-line], www.oecd.org/dataoecd/1/22/42416969.pdf.
[19]
Laux, C. and Leuz, C.; Did Fair Value Accounting Contribute to the Financial Crisis?; Journal of Economic Perspectives; October 2009.
[20]
Montogomery, D. C. and Runger, G. C., “Applied Statistics and Probability for Engineers (3rd Edition).” John Wiley & Sons, Inc. USA, 2003.
[21]
Giggons, J. D. and Chakraborti, S., “Nonparametric Statistical Inference (Fourth Edition).” Marcel Dekker, Inc. New York, 2003.
[22]
Hinton, P. R., “Statistics Explained (2nd Edition).” Routledge, London. Retrieved from Taylor & Francis e-Library, 2005.
Open Science Scholarly Journals
Open Science is a peer-reviewed platform, the journals of which cover a wide range of academic disciplines and serve the world's research and scholarly communities. Upon acceptance, Open Science Journals will be immediately and permanently free for everyone to read and download.
CONTACT US
Office Address:
228 Park Ave., S#45956, New York, NY 10003
Phone: +(001)(347)535 0661
E-mail:
LET'S GET IN TOUCH
Name
E-mail
Subject
Message
SEND MASSAGE
Copyright © 2013-, Open Science Publishers - All Rights Reserved