International Financial Reporting Standards 7 (IFRS 7) Compliance by Listed Banks in Nigeria

Authors

  • Hasnah Kamardin
  • Rokiah Ishak
  • Adamu Garba Zango School of Accountancy, Universiti Utara, 06010 Darul Aman, Sintok, Malaysia.

Keywords:

IFRS 7, compliance, listed banks, Nigeria

Abstract

Banking business is a risk- taking endeavour. Consequently, it requires strict adherence to standard regulations that is effective both in monitoring and enforcement. In recognition, the IASB rolled out three different but inter-related standards (IFRS 7- financial instruments disclosure, IFRS 9-financial instruments recognition and measurement and IAS 32-financial instruments presentation). This paper assesses the role of IFRS 7 because items should be disclosed before an objective assessment of compliance can be possible. The sample of this study are fifteen (15) out of the twenty- one listed banks because they are the ones currently in active trading on the main board of the Nigerian Stock Exchange (NSE) as at December 31, 2011 and, whose financial report is readily available (NSE, 2012). The findings of the study reveal that banks compliance is above average although total compliance is the ultimate wish of the stakeholders. Therefore, more need to be done by the new regulatory body- the Financial Reporting Council of Nigeria (FRCN) to ensure total compliance.

Author Biography

Adamu Garba Zango, School of Accountancy, Universiti Utara, 06010 Darul Aman, Sintok, Malaysia.

PhD STUDENT, SCHOOL OF ACCOUNTANCY, UNIVERSITI UTARA, MALAYSIA.

References

Abdullah, M. (2013). Quality of corporate mandatory disclosure in Malaysia: Evidence from two methods. 4th international conference on business and economic research (4th ICBER 2013) proceeding 04 †05 march 2013. Golden flower hotel, Bandung, Indonesia. Website: www.internationalconference.com.my

Abraham, A., Deo, H. & Irvine, H. (2006). What lies beneath? Financial reporting and corporate governance in

Australian banks. Asian Review of Accounting, 16(1), 4-20.

Ahmed, I., Madawaki, M. D. & Usman, F. (2014). Managing bank fraud and forgeries through effective control

strategies. a case study of central bank of Nigeria, Gombe branch, International Journal of Business and Management

Invention, 3 (4), 07-17.

Akpan, E. O. & Amran, N. (2014). Board characteristics and company performance: evidence from Nigeria. Journal of Finance and Accounting, 2(3), 81-89.

CAMA (1968), Laws of the Federation of Nigeria, CAP 59, Vol.III.

Central Bank of Nigeria (CBN, 2006). Code of corporate governance for banks in Nigeria post consolidation.

Companies and Allied Matters Act (CAMA, 2004), Laws of the Federation of Nigeria, CAP 59, Vol.III.

Daske, H., Hail, C. and Verdi, R. (2007). Adopting a label: Heterogeneity in the economic consequences of IFRS adoption. Initiative on Global Market, the University of Chicago Graduate School of Business.

Guest, P. M., (2008). The determinants of board size and composition: evidence from the UK. Journal of Corporate Finance, 14, 51–72.

Hodgdon C., Tondkar, R. H., Harless, D. W. & Adhikari, A. (2008). Compliance with IFRS disclosure requirements and individual analysts forecast errors. Journal of International Accounting, Auditing and Taxation, 17, 1-13.

Hodgdon, C., Tondkar, R. H., Adhikari, A. & Harless, D. W. (2009). Compliance with international financial reporting standards and auditor choice: new evidence on the importance of the statutory audit. The International Journal of Accounting, 44, 33– 55.

Hoggson, N. F. (1926). Banking through the ages, New York, Dodd, Mead & Company.

Hossain, Md. I. (2014). Regulatory compliance of IFRS 7 of the banks’ disclosures: A case study of the nationalized commercial banks of Bangladesh. Banglavision, 13(1).

IASB (2006). Preliminary views on an improved conceptual framework for financial reporting: the objective of financial reporting and qualitative characteristics of decision-useful financial reporting information, discussion paper, retrieved February 28 from www.iasb.org

International Accounting Standards Board. (2009). IASB enhances financial instruments disclosures, press release. London: IASB.

Kantudu A. S. (2006). Application of accounting standards on employee retirement benefits by quoted firms in Nigeria, unpublished PhD thesis, Ahmadu Bello University, Zaria.

National Bureau of Statistics Nigeria (NBSN, 2014). Money and Banking.www.nige rianstat.gov.ng/sector stat/sectors/money%20and20Banking.

Nigerian Stock Exchange (NSE, 2012). Nigerian stock exchange 2012/13 fact book www.nse.com.ng

Nwokoji, C. (2014). Banking in Nigeria. Moving forward despite challenges. Nigerian Tribune Business.

Tribune.com.ng/business/tribune-business/item/17566. Retrieved 28/11/2014.

Papa, V. T. & Peters, S. J. (2011). User perspectives on financial instrument risk disclosures under international financial reporting standards (IFRS),

Pestemak, Y. (2011). IFRS 7 risk disclosure. Master thesis. Eur.ni/pub/8838/m243-

Ridwan.K.(2011).The banking industry in the last fifty yaers.http://nigeriacommentaries.blogspot.com/2011/02/banking-industry-in-last-fiftyyears.html

Downloads

Published

2015-12-14

How to Cite

Kamardin, H., Ishak, R., & Zango, A. G. (2015). International Financial Reporting Standards 7 (IFRS 7) Compliance by Listed Banks in Nigeria. Asian Journal of Applied Sciences, 3(6). Retrieved from https://ajouronline.com/index.php/AJAS/article/view/3404