IFRS Compliance Appraisal: Evidence from Nigeria and Ghana
IFRS Compliance Appraisal: Evidence from Nigeria and Ghana

Summary/Abstract: This study appraises the quality of compliance upheld by selected Nigerian and Ghanaian manufacturing companies to minimum disclosure requirements of IFRS during financial reporting. Hence, It determines whether any significant difference exists in the compliance quality of the post IFRS Financial Statements prepared in Nigeria and Ghana in their first five years of IFRS adoption. It is an empirical study that is descriptively designed to pave room for the use of the content analysis scoring system as the core instrument for data collection. A total of 44 manufacturing companies (22 companies each in Nigeria and Ghana) listed on the floors of the Nigerian and Ghana Stock Exchanges were purposively sampled and scored for quality compliance on a 4-point rating scale through her post IFRS compliant Financial Statements for the years 2007–2011 (Ghana) and 2012–2016 (Nigeria) respectively. Scores derived were however analyzed using the Mann Whitney U Test, and it was discovered that a significant difference exist in the compliance quality of post-IFRS Financial Statements prepared by public listed manufacturing companies in Nigeria and Ghana, with Nigeria having better IFRS disclosures compliance edge over Ghana. This implies that the regulatory approach to IFRS implementation in both countries apparently differs. The study however recommends that a more robust regulatory oversight on companies’ full compliance to IFRS disclosure requirements be upheld towards achieving a commendable level of comparison in both countries’ IFRS Financial Statements as expected. More so, companies’ consistent full compliance to IFRS requirements should hence be adopted as one of the perquisite for her continued listing by the Nigerian and Ghana Stock Exchanges

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