The influence of cultural diversity on the convergence of IFRS: evidence from Nigeria IFRS implementation

Autor: Christopher Gan, Felix Amenkhienan, Jude Edeigba
Rok vydání: 2019
Předmět:
Zdroj: Review of Quantitative Finance and Accounting. 55:105-121
ISSN: 1573-7179
0924-865X
DOI: 10.1007/s11156-019-00837-0
Popis: This study investigates the influences of companies’ cultural diversity on International Financial Reporting Standards (IFRS) adoption in Nigeria. The diverse response to IFRS adoption is a phenomenon that necessitates further investigation to understand the reasons some companies adopt IFRS while others do not. Previous studies have investigated preparers of financial statements’ adoption of IFRS and there is a dearth of research on the role of cultural difference on IFRS adoption. However, little has been explored to understand the impacts of cultural variables on IFRS adoption. Using a self-administered survey questionnaire and logistic regression, this study identifies that financial statement preparers’ levels of professionalism, transparency, flexibility, secrecy, uniformity and the statutory control dimensions of cultural factors impact IFRS adoption at different magnitudes. The study notes that IFRS adoption can only be successful when accountants develop the relevant technical expertise in IFRS prior to implementation. This includes practical training in IFRS requirements, accounting assets and liabilities valuation, recognition of income or liabilities and disclosure of economic events before and after the reporting period consistent with IFRS 10.
Databáze: OpenAIRE
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