International Financial Reporting Standards 7 (IFRS 7) Compliance by Listed Banks in Nigeria
Keywords:
IFRS 7, compliance, listed banks, NigeriaAbstract
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.
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