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1.1 Introduction
“International financial reporting standard” is the set of accounting standards that describe different financial statement types. The objective of IFRS is to set the outline of the "international accounting standard board" to observe the future scope of an individual project. It helps individual investors identify the capital market of a project of financial information. The size of the economic situation is a significantly adopted costing system. Apart from that, the advantages of accounting standards depend on the financial information process. IFRS is the set of common rules of financial statements that can be compared to the financial information system. Some benefits are included in the stock market such as that increased market liquidity, identifying the major difficulties as well as lower cost of capital. The greatest benefit of the financial reporting system is that it involved setting up some general rules that can recognize the standard market value.
1.2 Background of the research
The background of the research focuses on the different types of IFRS policies that can be mitigated by numerous financial challenges. IFRS originated the intention of business affairs by adopting a common financial rule in the research. The main purpose of the IFRS is to establish a common accounting system across industries. The goal of IFRS is to create standard financial statements in individual research. A standard financial statement of the business is necessary and describes the accounting statement for individual businesses. A set of accounting standards is the set of accounting transactions in the reported financial statements. IFRS is required in the financial statements to compare reliability as well as clarity of accounting statements (Lawal et al. 2020). The impact of the “international financial reporting” is to identify the available business sources and makes greater solutions to efficiently control financial activities. IFRS represents the financial statements to identify the economic difficulties of the business.
IFRS requires the financial statements to accurately prepare a clear vision in the financial statements. An integrity accounting system is necessary to compare financial statements such as cash flow, balance sheet as well as statements of instability in equity. A standard financial statement is required to generate more accurate income for the individual industry (Abdullahi and Abubakar, 2020). IFRS efficiently ensures financial quality by identifying accounting statements. Accounting systems are globally humanized by the IFRS policy and that can indicate the long-term investment policy in the business. IFRS policy significantly adopts cost to efficiently communicate greater transparency. The profitable, as well as investment decisions, are generated more accurate returns by following IFRS policies. IFRS indicates how to establish a common accounting system to ensure financial statements across the industries. There are numerous features of IFRS policy such as companies are made accurate financial decision-making process, as well as IFRS.
1.3 Rationale of the research
IFRS is important to contribute to parsimonious efficiency by identifying more prospects across the world. The main objective of IFRS is to develop high-quality and understandable pieces of information in the ‘financial statement’ that easily identify greater transparency for better communication. IFRS is disclosed that develops and analyses the market performance that indicates how to extend financial performance (Sanniet al. 2020). IFRS is easy to compare financial statements that identify long term opportunities.Globalization, as well as international trade, is measured by the efficient policy that can be controlled financial statements by applying "global business rules".
There are some benefits of the IFRS such as individual investors are leading great willingness of individual investors by disclosing the better quality of the IFRS policy (Osasere and Ilaboya, 2018). The relationship between financial statements and the company is measured by the IFRS performance and finding great solutions to minimize economic difficulties. The primary reason for IFRS is to control financial statements and identify capital flows in a business. The financial statements required an appropriate decision-making process for accurate transactions. IFRS is the standard way of international accounting that measures financial as well as non-financial financial pieces of information.
1.4 Problem statement
IFRS is formulated by the "International accounting standard board" and provides financial positions of the business. The continuous modification process is the biggest difficulty of IFRS and that hampers the accounting rules of the business. A standardized accounting system is necessary and can follow basic rules by adopting an efficient decision-making process (Osho Augustine et al. 2021). Insignificant adoption of cost is involved by the IFRS which can reduce standard flexibility.
1.5 Research hypothesis
HO: The changes in the standards of conceptual framework of IASB are not depended over the changes in the standards of IFRS.
H1: The changes in the standards of conceptual framework of IASB isdepended over the changes in the standards of IFRS.
Research hypothesis is a statement of predictions or expectations which is observed by the research. The relationship of the study is tested with the research hypothesis which is predicted by the research.
1.6 Research Aim
The aim of the present research study is to evaluate the international financial reporting standards for the purpose of measuring the conceptual framework of IASB of Nigeria.
1.7 Research Objective
1.8 Research question
1.9 Significance of the study
In order to develop high, quality enforcement of financial reporting slandered board compares the overall information process to identify the capital market. IASB is known as IFRS and that can facilitate financial reporting systems. The relationship between financial information as well an individual firm's performance can be following the basic rules of IFRS (Ofoegbu and Odoemelam, 2018). The overall financial and non-financial information systems are completely dependent on the IFRS policy and that can be found in the structural performance of the business. The association of IFRS is necessary to identify the structural performance and review the research hypothesis. Some benefits are included in the stock market such as that increased market liquidity, identifying the major difficulties as well as lower cost of capital. The greatest benefit of the financial reporting system is that it involved setting up some general rules that can recognize the standard market value. In order to develop non-financial measurements, IFRS policy is necessary and provides coherent solutions to the business. The ultimate creation of profitability is signified by the performance measurement systems to disclose the process of minimizing the lack of transparency.
Apart from that, high profile corporate scandal is triggered by the international monetary system and that can legally ensure the tightening of government regulations. The basic areas of financial reporting are necessary and prepared high-quality financial statements. Nigerian accounting standard board follows the “statement of accounting standard” that ensure responsibility to established financial information system. IFRS is the standard way of international accounting that measures financial as well as non-financial financial pieces of information. The “financial reporting council” especially listed “Nigerian stock exchange” by using a single set standard accounting system. In order to establish the local-global investors is to involve better financial resources in the business or firm. Investment involves global commodity by involving capital outlay. Investment opportunities are necessary for the business to measure high-quality risk and investment opportunities (Odoo, 2018). In order to investigate the economic impacts is necessary that significantly involves a superior financial information system. Investment involves transparency to attract individual investors to the business.
1.10 Research Outline
A research outline is an efficient tool that ensures structural performance by involving an efficient business process. Financial information system, as well as an economical decision-making process, is necessary and that can be established by the IFRS policy. The conceptual framework of IASB is necessary to initially focus on ideas as well as recognized the economical requirements (Ademola et al. 2020). Investment involves transparency to identify financial conditions, as well as that, can also describe the basic outline of the overall index. IFRS is mandatory to regularly communicate required pieces of information in the business. The ownership structure is mandatory and discloses the financial performance by an internal auditing system.
The market capitalization is most important that significantly correlates with the mandatory disclosure of positivity. The types of independent variables as well as industrial or commercial firms of Nigeria use extensive disclosure practices to ensure a positive relationship between the firm and financial performance (Odoemelamet al. 2019). IFRS is necessarily adopted by Nigeria to efficiently maintain financial reporting systems. The relationship between the global audit systems as well as financial performance is maintained by the standard IFRS policy.
1.11 Summary
The slandered IFRS systems provide systematic outlay by adopting a systematic information process. The basic requirements of financial resources are sometimes indicated by the IFRs policy and that provides a clear vision to manage basic differences between a company's performance and abilities (Chukwu and Odoo, 2020). IFRS adoption is the appropriate process that is adopted by Nigeria and maintains financial as well as non-financial performance. The financial statements are an appropriate way to ensure profit-oriented entries. The financial information systems are necessary for individual firms that efficiently provide an effective strategy to compare financial statements. IFRS is the standard way of international accounting that measures financial as well as non-financial financial pieces of information.
In order to, IFRS policy involves separated information systems and consolidated financial statements are involved by the financial position. Apart from that, the principles of IFRS systems are focusing on the financial statement to identify the business ability of the firm. National standards and practices are enhancing the ability of the financial position and alternatively involve greater solutions in the business. IASB approves the availability of the financial conditions that measure population. The overall disclosure of the financial statements is necessary that can be described by the IFRS systems.
2.1 Introduction
The IFRS and IASB are the accounting standards that are used in making financial decisions for the company. IFRS stands for “International Financial Reporting Standards” and IASB stands for “International Accounting Standards Board”. The main aim of this research study is to ascertain the accounting standards of the country Nigeria. IFRS is a set of financial and accounting standards that hold the power to govern the financial events and transactions that are used in reporting the events in the accounting books. In this chapter, the concepts of dependent and independent variables of IASB and IFRS are explained in brief. The theories, approaches and models related to the accounting system that enables accounting standards are reflected in this section of the study. The conceptual framework is also provided with all the required measures and variables for this report.
2.2 The standards of international financial reporting standards
International financial reporting standards are a group of accounting standards that govern the particular types of transactions and events which should be reported in financial statements. IFRC provides the opportunity globally on a consistent basis to provide investors and other users of financial statements to compare the financial statements. IFRS is now used in more than 100 countries including Nigeria. IFRS policies are mitigated by several financial challenges and apart from that, challenges of accounting standards depend on the financial information process (Yureneva et al. 2018). IFRC 15 is effective for annual reports periods and it establishes the principles that identify the nature, amount, timing, cash flows and uncertainty revenue from a contract with a customer.
The Independent variable (IV) refers to the manipulation and control over the variables that are used for the research purpose. As opined by Abdulrahman and David (2018), these variables are not influenced by other variables as they can be changed or altered due to any additional element. IV is a variable through which the concept of each variable can be analysed by the changing responses of the research. IV in accounting standards can be stated as the impact of IASB and IFRS, and the interrelation between these two accounting concepts (Abiah et al. 2020). This accounting concept shows its efficiency in maintaining all the records of any business event in a systematic manner.
The accounting standards help in maintaining good business relations with the other firm by showing the efficient results. As per the view of Abiodun and Adamu (2018), the set of accounting standards can be useful in Nigerian companies. The public companies as well as the quoted companies in Nigeria use these standards to maintain their accounting records. Keeping exact records makes the firm more efficient in the business market. The independent variable in these accounting terms improves the record g segment of all the accounting transactions. It enables the firm to adopt any changes in the budgets or the expenses that are easily rectified or replaced by using the accounting standards. As per the author Alibiedet al. (2019), mainly IFRS is used in the country Nigeria as the GAAP is not viable for other countries due to its complex nature of recording transactions.
In accounting, the independent variable shows an attribute to change the orders of inputs and output of the financial transactions. As stated by Dang et al. (2020), the dynamic nature of accounting standards enables the research report to be more useful to its users as it contains all the changing events. These independent variables make sure that the researcher can take all the exact information related to the IFRS standards and their application in the country of Nigeria. One of the main or basic examples of the independent variables is that age of any person can be st6aed as an independent variable. As the age is not fixed it changes from time to time. As per the view of Dzungaria and Schneider (2019), mainly for the one-year time period. Therefore, independent variables are an important segment for the literature review part of a research study.
2.3Implementing the standards of IFRS
IFRS processes are broken into three parts, analysis and assessment phase, implementation phase and post implementation phase. Among these three parts the implementation phase is the most important phase for preparing IFRS. The company makes solutions for the problems which creates new rules and systems for taking the policies of IFRS. Besides the IFRS implementation, the company improved the business processes and information systems, created a new business process and information systems also. IFRS implementation has a great impact on all aspects of a company like cash management, management compensation, taxes, internal control, and financial reporting etc. The principles of IFRS aprincipal-based set of standards for multinational companies (Osadchyet al. 2018).
The dependent variable is also known as the outcome variable. It basically depends on the values of the independent variables. As mentioned by Johet al. (2019), this is a variable whose whole magnitude is represented by the number, that is, it can be measured in quantity. The dependent variable is also known as the predicted variable. The dependent variables are basically used to determine the fixed factor of the elements which is ascertained for presenting the research report. Dependent variables can be used to measure the quantitative results that are acquired for the findings of the research topics. The dependent variable in this research study is the importance and aspects of IASB and IFRS (Joh et al. 2020). This is because of the value of the accounting standards and the authority that acquaints the reports that are made under these standards.
The dependent variables in this research study reflect the accuracy of the accounting methods. As per the author Elumelu et al. (2019), that can increase the capacity of the firm by enabling accurate methods of maintaining records. The “total of a mixed cost that will change as the result of several factors” is shown by the dependent variables in the accounting. The main concept of the dependent variable is to analyse the experiment of the research where the application of the IFRS in the country has shown a remarkable change. These changes are occupied in the firm where the companies operating in Nigeria have to maintain their records. As stated by Hannity’s and Widodo (2019), they mainly keep their records according to the norms stated by the IFRS or IASB. These predictive variables predicted the data and sources to a great extent.
2.4 Evaluate the interconnection of the international financial reporting standards and IASB of Nigeria
Financial reporting is the preparation of published reports for users of financial statements. In Nigeria the increasing demand for financial data of companies, financial reporting has now assumed a positive position because it provides data and information which is useful; to potential and current investors, creditors and others users in creating credit, rational investments and the changes of them IFRS is a set of common rules of financial information processes and describes the accounting statement for individual research. Financial reporting framework refers to fundamental accounting performances and assumptions, principles, methods used to present, prepare and report financial statements for a wide variety of entities etc.
There are various theories and approaches that are used in the accounting standards theory to make them effective in use. As opined by Ibidunni and Okere (2019), the theories related to the accounting standards are process theory, accounting theory, agency theory and “positive accounting theory”. In these theories, the implications, implementations and assumptions of IFRS are defined in a brief way. The adoption of IFRS in different countries and different places and the countries' experiences are also reflected in the above theories. The four principles of IFRS in setting up the financial strategic theory or standards are “clarity, relevance, reliability, and comparability”. These principles are set by the recording concepts including the financial events and transactions (Mohammed et al. 2021). The theoretical approach makes the research reports useful for its users and other researchers.
The theories and models of accounting state the norms and rules to record or maintain financial events. Adoption of IFRS refers to the beneficial part of future research related to the finances of any business concern. As per the author Mohammed et al. (2021), the set-up standards that are mentioned in the IFRS make the company more compatible. The transparency of accounting data and norms can be clearly shown through the IFRS. The theories and methods that are used under these concepts enable the companies to run on a smooth path and make the firm more competitive in nature. It also increases the revenue of the firm.
2.5 Monitor financial reports by analyzing the business or organization.
Monitoring financial performance plays a crucial role in an organization to ensure all accounts details and data, information of the company. Monitor financial reporting provides all aspects to internal and external stakeholders as an accurate internal and external stakeholder. There are some methods to monitor the financial reporting which is useful to analyze the business or organizations. The basic key of preparing financial reports to produce the balance sheet and the profit loss statements then trial balance should be prepared and should maintain accurate inventory records of this organization. Therefore, working capital statements and ratios should be prepared for getting all data of the company and it can be compared to their liabilities. Financial indicators of the organization can compare with the other competitors. IFRS policies are necessary and provide coherent solutions to the company (Rahman, 2020).
The importance of IASB and IFRS can be shown through their application and implementation in the organisation. As mentioned by Moses et al. (2020), in the context of the Nigerian companies, the IFRS was adopted in the year 2013. It helps the firm to manage its organisation with the help of certain standards and rules. In the companies, IFRS leads to providing “higher earnings value relevance”. As stated in the companies act that the business transaction must be recorded as per the rules mentioned in the accounting theories and books. Through the implementation of IFRS, the new system was launched in the country where they manage their accounting principles to a great extent (Nangi and Anichebe 2021). It mainly allows the company's manager to discrete their specific treatment to analyse the business channels.
The importance of IASB can be stated by ascertaining the company's values or connection with the other companies including the foreign firms. As per the author Ofoegbu and Odoemelam (2018), under these, the accounting standards review the financial statements of foreign companies. The records or the financial data are explored by the parent company managers to ascertain the profit segment from one company to another. From the financial reviews, the company can get the investment opportunities from the company to enhance its business activities. It also establishes formal relationships with the international companies as both are operated under the same set of accounting standards. As opined by Ogbodo and Nweze (2021), the company has its branches or subsidiaries that are supposed to follow the same accounting principles that are followed by the parent company in different nations. Only the informal perspective of an organisation is changed in the foreign companies.
The main importance of the accounting standards of IFRS and IASB are as follows.
IFRS and IASB provide full transparency in mounting the records of all the business and economic events related to the company, small scale industries and as well as government organisations. As stated by Okedie et al. (2021), it minimises the margin of negative results and errors of the management in ascertaining the records. The reduction in errors and in maintaining the proper records implies proper usage of funds, earnings, transactions, and company balances. IFRS is mainly developed to implement “uniformity in the presentation and understandability of statements”. The presentation of the statements under this accounting theory states that the records are eventually recorded as permanent data. As mentioned by Onodi et al. (2018), otherwise, these data are for financial views or usage, where no changes can be altered. Every member of the company follows the same set of standards implies the overall growth of the firm.
It mainly helps the agency to follow the same common law of business and finances to participate in the world market economy to ascertain their personal growth levels. As per the view of BE et al. (2018), these growth levels make the company more convenient in measuring the profit and debt position of a company. The companies operating in Nigeria have to disclose their company performance and their business operating size is also shown through this accounting model. Recognizing the financial standards enables the firm to compare its growth comprehensively with the other companies that are operating in the same market segment. The company, IFRS 9 has been used in Nigeria since 2018. Therefore, its annual statements are ranging from 1st January 2018 to 31 December 2018. As per the author Osenet al. (2018), procedures and principles of accounting are basically submitted in this segment. From where the current and forecasting value is easily ascertained.
The accountability of the IFRS system in maintaining the accounting records can be visible through the business and financial activities. According to Rosli and Jamil (2021), it fills the gaps between the incompetent reports of the financial transactions. If the records have not complied with the stated rules and norms of the IFRS, then the company can face backlashes and can be penalised by the authorised institution. For example - one of the companies under the Nigerian Stock Exchange”, mistakenly added the double value for the assets and the overall balance sheet was not according to the IFRS standards. The company charged a huge amount as a penalty. Therefore, it is mandatory to follow the guidelines mentioned in the IFRS standards. As per the view of Suryanto and Komalasari (2019), IFRS and IASB enable the secure flow of the “direct and indirect foreign investments across nations”. This shows the accuracy of the accounting standards in the business market of the country Nigeria.
2.6 Impact on accounting model
The impacts of IASB and IFRS on the Nigerian companies are disclosed in this part of this study. As the companies operated in the country are segmented as small scale as it is not an industrial place where large firms are set to be opened (emerald.com, 2022). Therefore, the small companies and the big firms have set up their institutions by adopting the IFRS accounting standards. The adoption of accounting standards reflects the quality of reporting the financial statements by improving the data and information that are collected on a daily basis. In the banking sector of Nigeria, the questions are raised about the adoption of financial standards to make uniformity among all the companies that are operated in the country line. The Chi-Square techniqueis followed to conduct a survey between the stakeholders and the managers of different firms (ifrs.org, 2022). This is to ascertain the relevance of the IFRS.
The test that is done with the techniques has resulted in a positive note where it can be seen that the impact of the accounting standards is clearly visible. The banking sector comprises the results at “14.96 that is greater than the X2-critical or table value of 5.99 at 0.05 LOS ''. as per the view of Osadchy et al. (2018), this shows the impact of financial standards has significantly increased the quality of reporting. Although, the company is facing compliance issues that are hindering the profits segment of all the firms. The industrial structural changes that abound in the companies state the positive aspects of IFRS. However, the country manages to adopt the IFRS due to its management system and its flexibility.
The major impacts of IFRS are stated below.
The major impacts that are listed above show the accuracy of the accounting standards that are stated in the IFRS that is authorised under IASB. One of the drawbacks that IFRS has is that it cannot create a proper profit and loss account as it is totally based on the static concept. In a simple manner, the income statement holds the balances that are obtained from the assets and liabilities. As opined by La Torre et al. (2018), these amounts change their origin for a few reasons. Therefore,the fluctuating values cannot be easily ascertained in this accounting system. However, the firms manage to bring accurate results by managing the expense over profits.
The Cogent Business and Management refer to the research reports that cover all the areas of the business from operation to corporate governance. As per the author Reid et al. (2019), in the context of Nigerian companies and their connection with IFRS shows that the “listed firms have highly concentrated ownership structures”. They are dominated by those “families followed by financial institutions” than the foreign investors. This setup needs to be changed to develop the business sector of the country. This shows less ownership in the existing business cycle. Moreover, the company is aligned with their own culture and assimilates less cooperation with the IFRS. As per the view of Flower and Ebbers (2018), later the government has decided to take over the standards and made them compulsory for use. Therefore,the investment decisions are also taken according to the standards mentioned in the IFRS. The impact of IASB is also determined along with the stated IFRS where the accounting standards need to be adjusted as per the company requirements.
The combinations of the business are measured by the IFRS policy and sometimes purchase methods are prohibited by the merger accounting. IFRS increases the risk of more assets that can be measured by the basic changes of the organization. Some specific entries are measured by the financial assets and that sometimes reduce organizational liabilities. In modern economics international capital as well as financial transactions are necessary for the business to raise capital in the international business solutions (Okoye and Nwoye, 2018). The requirements of the accounting model are involved by the IFRS sometimes that ultimately maintaining the national accounting standard board. In order to apply national standards board is measured by the financial statements to recognize raising profitability. Accounting models transparently ensure individual investors as well as market participants to involve in economic decisions in the business.
An accounting model represents the company's performance through financial statements and identifies financial transactions. The impact of accounting information is necessary and that helps individual creditors as well as investors by playing a vital role in the accounting systems (Odo, 2018). It also encourages accountability as well as transparency during the preparation of financial statements. The significant impacts of the GAAP and IFRS policy are necessary during fair value measurement. The purpose of the IFRS is to classify and measure financial assets as well as liabilities by the business models. In order to mitigate the difficulties of the financial position accounting model prohibited individual risk and identify future opportunities during the same time.
2.7 Challenges faced by IFRS and IASB
Challenges of IFRS
Increased cost
The basic difference can be seen between training and educational systems and find out revolutions during the difficulties. In order to global consistency in auditing, systems are necessary and involve more flexibility during the difficulties. In order to use the fair value of financial statements accounting can bring workability to ensure better financial pieces of information for the shareholders. In order to, IFRS has decreased the ability of financial performance due to poor knowledge as well as experience in the global management operations (Ofoegbu and Odoemelam, 2018). The standard financial information process is necessary for the individual firm that crates basic difficulties at the global level. Lack of details as well as standard manipulation is the other biggest difficulty for IFRS. IFRS policy is not globally accepted and required flexible information processes in the business or firms.
The advantages of IFRS depend on the standardization systems but that required appropriate knowledge as well as experience. The aim and objectives of the research is to provide accurate information through the help of implementing the standards of IFRS.
In order to improve major financial statements times and proper knowledge is necessary to measure long-term difficulties. IFRS is a complex system and difficult to track and can only monitor with expertise. Identifying the challenges of IFRS is necessary to minimize business threats.
Lack of proper details
Investors are really on the financial statements and that can be adopted as an accurate way to enhance company worth. A standard manipulation can be considered by the IASB but that sometimes involves basic difficulties. Financial reporting is more powerful by the IFRS as well as IASB policy and that need more accurate knowledge. Both processes are much more time-consuming and small business organizations do not afford them. The comparative information process is indicated by the IASB policy and can be compared to the overall information process of business (Ofoegbu and Odoemelam, 2018). An income statement is a comparative advantage but that required too much knowledge during the same time. Identifying the financial resources is involved by the IFRS but that much more time-consuming. The comparative information process is necessary to identify the basic challenges that can be considered the difficulties of accounting language.
Having little or no knowledge
Poor knowledge is the biggest difficulty of IFRS and IASB and both need much experience to consider appropriate research. The poor knowledge as well as having no knowledge does not describe the experience. Sometimes financial performance can be failed due to increased transparency of IASB and that efficiently presents accounting language to identify basic requirements. Sometimes poor accounting systems are another difficulty for IASB and that puts a negative impact on the business performance (Pacheco et al. 2021). The financial reporting system is adopted by the IFRS policy and that can describe the basic compatibility of accounting positions. IFRS generally adopts substantive charges to identify the basic practices. A required IFRS policy is necessary and that can involve basic performance.
Significant adoption of cost
Significant adoption of cost is the alternative strategy that involves the consolidated financial statements. In order to disclose financial pieces of information IFRS policy is required but having poor knowledge is the biggest challenge for IASB. Identifying the basic requirements of IFSB is necessary but much time consuming and a lack of financial resources are necessary for the business. The basic requirements of IFSB are involved in the standard accounting systems to adopt the standard policy for the business. Accounting policies are necessary and that can minimize the basic opportunities. Generally, IFRS adopts a standard way of practicing to involve a reliable business framework. Lack of technical skills, as well as cost regulations issues, are other difficulties that have been faced by the IASB. The long-term approvals are necessary and that can be identified by both policies.
2.7 Challenges faced by IFRS and IASB
Taxation effect
Through the adoption of the “International financial reporting standard” various accounting elements are significantly changed that uncertainly affecting tax regulations. The accounting treatments are depending on the income taxes of domestic as well as foreign countries. The effect of IFRS depends on the consistent evidence that trigger greater interest from foreign investors (Kabir and Rahman, 2018). The mandatory disclosures are efficiently correlating with the market share price. Apart from that, develop high-quality enforcement of IFRS that compares the overall information process. Some basic rules are followed by the "revenue from contracts, insurance contact" and 'leases'.
In order to, IFRS describes the global framework by disclosing financial information systems. The financial reports are necessary to monitor financial activities. Apart from that, identifying financial activities under IFRS is important but that required much knowledge as well as experience. In order to, improve the regulations of IFRS qualitative characteristics are necessary to improve investment efficiency (Kruglyak and Shvyreva, 2018). There are some challenges to the adoption of IASB such as the fair value of accounting can bring instability during the same time and a low level of awareness does not meet numerous expectations.
2.8 Interconnection between IFRS and IASB in Nigeria
The preparation and issuing of draft
The approvals, as well as issuing of drafts, are stipulated in the constitution which is approved by the interpretation committee. The IFRS is organized under an individual foundation that is based on some rules and regulations (Gornik-Tomaszewski and Choi, 2018). The IASB is replaced with the IASC and a maximum of 14 members are set for the technical agenda. Apart from that, IFRS is also issuing of 14 members to develop technical fundamentals. The major agenda of the project is necessary that provides standard saturated into the different types of technical projects. In order to analyze the representative groups between the overall structure of the particular research IFSB and IASB played a major role. The financial statements can be assumed as financial activities of the research and both are focusing on the specific activities. On the other hand, the global accounting standard is the ultimate aim of IASB to setting up understandable as well as high-quality enforcement.
Some financial activities are involved by the IASB that are able to meet the high quality and transparent foundation of IASB. During the preparation of the draft, the statements of IASB assumed accounting standards to develop public interest. In order to, meet high-quality objectives of IASB accounting pieces of information are necessary and that can be similar to things that have been used by economic committees. In order to, prepare the draft the relationship between IASB and IFRS is necessary to rebuild and maintain cooperation between the accounting standard. IASB needs to designate b communication to fulfill and communicate promotional activities (Crawford et al. 2018). Accountability is necessary for financial reporting standards to increase and gather more views. The “Nigerian federalism executive council” has to try to approve the role of IASB. The interpretation committees approve the issue draft to ensure reliability as well as compatibility.
Monitor financial reports by analyzing
Financial statement analysis is continuously monitoring financial reports to update capital statements and other financial transactions. Financial reporting analysis is involved by the IASB and that can identify the financial health. The financial resources are efficiently generated with the company's financial health by horizontal and vertically analyzing the financial reports. In order to, identify financial techniques are necessary to analyze financial statements and that can depend on the process of IASB. IASB is the process of consultation and that can be appropriate for communicating efficient ideas. Direct ideas are involved by the IFRS and consistently provide accurate financial transactions by local knowledge (Segal and Naik, 2019). During an increasing incompatibility between the firm and ideas, investors' risks are identified by the financial statements, and that review financial documents to understand capital allocation techniques.
The impact as well as the implementation of IASB techniques financial reporting standard is to identify some cultural challenges through the creation process. Although other accounting standards are enough time to prepare financial documents through the IASB. Sometimes international investments are finding some cultural scope for the individual investors. Through the IASB monitoring and developing exposure draft to facilitate contextual material is analyze devote resources. "Financial statement analysis" is the process of analyzing companies' financial activities to update inventory records as well as research areas (Al-Adeem, 2020). The accounting standard in Nigeria depends on the federal ministry of commerce to identify the expected returns. There are some benefits of IFRS such as involving efficient accounting principles, and identifying the important scope of accounting by establishing an "International accounting standard board". There are more benefits of IASB such as facilitating ethics compliance and operating standard behavior of the company owners.
Develop international investment
The benefits of accounting standards are involved in the investment strategy which is more convenient to compare basic performance. Individual investors compare the basic performance by reviewing financial documents. Individual foreign countries are more convenient with the accounting principles of IASB. Sometimes international investment strategies are based on accounting principles which permit a more important scope for reliable accounting pieces of information (Hasan and Rahman, 2019). Apart from that, IASB allows reviewing of individual financial documents to establish the important relations by setting up accounting principles.
On the other hand, IASB involves the decision-making process with the help of great deals to recognize the financial status and flexibility. Sometimes unexpected changes are identified by the principles and that rapidly makes some unexpected changes in the global business environment (Suryanto and Komalasari, 2019). Adoption of IASB is mandatory to ensure supply chain management of Nigerian small business enterprises. The future scope and importance are necessary to varying jurisdictional circumstances. Sometimes restrictive scope is involved by using IFRS which is automatically accepted by the country.
2.9 Conceptual framework
2.10 Literature gap
A research gap is a common way which is involved insufficient pieces of information as well as a limited conclusion. In order to identify the research gap individual advisors are using digital tools as well as influential journals. The examples of the research gap are involved limited opportunity or insufficient resources.There are some basic differences between research problems and the gap which is, that those research problems are articulated by the research needs (Corderyet al. 2019). On the other hand, research gaps are extensive by the poor knowledge and limited scope of the research. A research gap is included by the unexplored areas as well as limited scope. Sometimes the “scope of further exploration “involves the research and which is the biggest research gap. The research gap sometimes involves a limited future scope but cultural awareness can minimize that.
Implementation, as well as innovation, is essential for long-term development and there are no reliable documents to identify the future scope. There is not enough availability of information regarding the sustainable business process in Nigeria. The theories regarding the sustainable financial pieces of information are effectively collected from secondary resources such as journals, books, and “Nigeria stock exchange corporate disclosure” (Shkulipa, 2021). Sometimes most of the negative information are involved in the accounting information process but that is interrelated with the accounting applications. As it is a new approach toward the expansion of financial or accounting standards in the companies. Limited opportunity as well as lack of financial resources are considered as major gap of the research which is find out through the study.
Sometimes the methodological gap is the main reason for the research and that minimizes the future scope of the research. Identifying the research gap is necessary and that describes more perspective to analyze the ideas and research gap. A research gap exists when new and innovative ideas are involved and justify the essential reasons to minimize the specific problems (Mora, 2018). The role of IFRS is to follow different ideas that can be analysed and identify the current states. The quantification of differences between the researchers is research methods are another important way of research. The gaps are involved by the major conflict as well as the mismatch between the practice and theories. The problem statements as well as a community of the country are focusing on the theoretical gaps. Sometimes theoretical framework is not properly meeting the expectations, and as result research gaps are occurring.
2.11 Summary
Based on the above discussion it can be summarized that financial strategy and planning plates a significant role in the adoption of IASB. IFRS is setting up global environments' respective scope and enhancing the basic importance of accounting standards (Baksaas and Stenheim, 2019). The concept of dependent variables and independent variables are described by the theories and models which is considered by the conceptual framework. The financial information systems are necessary for SMEs in Nigeria and IASB does recommend preparing financial statements. The visual representation has been considered by the conceptual framework with the helps of theories and models.
The accommodative of minimal IASB gives business owners to choose the appropriate financing format. International financial reporting standard is considered as independent variables and IASB conceptual framework has considered by dependent variables of the research. The international accounting standard is necessary to identify those cases in accounting standards.The financial information process is automatically accepted by the alternative solutions of financial statements.
3.1 Introduction
In this chapter of the research work, the research purpose with its techniques and processes are evaluated. In this, the techniques or methods for describing the research study in the qualitative and quantitative form are described. Gantt chart is also made to show the effect of the research methodology. The techniques and methods are identified, and then the selection of the technique is done. Then the selected data is analysed as per the requirements of the topic. There are four types of research methodology that are “observational, experimental, simulation, and derived”. For this research study derived and observational research methodology is suitable to evaluate the related information and other data. The research methodology is a theoretical analysis where the body of the research methods and the principles are followed. This is done while presenting the whole research report in front of their users.
In this part of the research study, the research process, philosophy. Approach, design, and data ascertaining methods, research timeline, and other methods are clearly shown. The sampling procedures, research tools, ethical considerations, research gaps and methodology summary are also presented to the user. In this part, the research approaches are significantly chosen as per the requirement of the research. As the topic is related to IASB and IFRS, the researcher has taken all the data from the secondary sources. The sources are related to the banks, markets, stock market and other business sectors. The concepts regarding the financial standards applied to the companies located in the country Nigeria. The financial standards that are adopted are mainly taken from the IFRS as these are the stated norms of the accounting policies.
The research methodology contains all the research data from a few companies that are located in Nigeria and show the need in the country. In order to implement the IFRS standards in the country in large forms, this research study is organised by the researcher.
3.2 Research philosophy
Research philosophy refers to the research phenomenon in which the objectives and nature of the report, as well as the researcher, are clearly visible. As per the view of Abdullahi and Abubakar (2020), the availability of the data that are collected for this research study is positive or not or whether it is legally adopted or not. These elements are needed to be addressed through the research philosophy. Basically, there are four kinds of research philosophy that are “Pragmatism, Positivism, Realism, and Interpretivism”. These philosophies are presented in each of the research reports where the validity and the qualitative nature of the research report are clearly stated. Mainly it deals sin the nature, source and knowledge of the researcher that is reflected in this research report (Ademola et al. 2019). The philosophical perspective is important for a research study because it shows the choices and assumptions of the researcher with respect to the topic.
In this research study, the positivism philosophy has adopted by the researcher. Under this, the definition derives from the positive aspects as well as the laws that are included in the research report. As stated by Akinola and Efuntade (2021), the goal of this philosophy is to evaluate the laws and abstracts as per the dynamics of the social universe. this research study is related to the accounting standards though which the positive aspects of the IFRS and IASB are shown with full efficiency. Through this, the beneficial elements of accounting standings in the companies operated in their country are shown clearly (Aliu 2019). In a simple manner, positivism philosophy states the genuine knowledge regarding the collected sources or data that are used in the research study.
3.3 Research approach
The research approach refers to the plans that are made for the research study. As per the author Buni and Yahaya (2021), it consists of steps and widely accepted assumptions where the research methods can be applied to draw the details regarding the collected information. There are mainly three approaches to research that are “quantitative, qualitative, and mixed methods”. In these, the data are collected or recorded in these three categories. After the collection of the data, the data are designed in a descriptive way that is useful for the readers or the users of the research report (Chika and Ukachi 2022). Quantitiavte data are mainly used in the research report that how can research can present its outcomes in a short time or in a clear and concise way.
In this research report, the deductive research approach has been used by the researcher to determine the specific research area. The selection of the deductive approach has been observed as more worthy and effective just because of it helped in maintain the in-depth analysis of the several variables used in this study which is not possible through the help of using abductive or inductive research approach. As mentioned by Chukwu and Aloy-Ezirim (2020), the main concept of this approach is to develop unique and specific ideas to reduce the issues that create hindrances in the research report. It is usually identified for ascertaining the specific factors and situational conditions of the research process. As the research has been done on the application of accounting standards in the country of Nigeria, this approach is the most suitable one. Proportional relationship factors are examined thigh this deductive approach of research (Ekweet al. 2020). The secondary quantitative data that are collected for this research purpose are shown in a descriptive way.
3.4 Research Design
Research design allows the researcher to adapt the suitable methods or techniques for the research report implementation. As per the view of Elosiuba and Okoye (2018), different research design provides situational activities for the research report. It analyses different facts and concepts regarding the data or the information that is used in the research reports. There are three types of research design that are “Descriptive Research Design, Correlational Research Design, and Experimental Research Design”. These research designs enable the excellent virtue of the research methodology where every researcher wants to control all the aspects in a clear manner. As opined by Erin and Oduwole (2018), the confidential aspect of the study is been analysed through the help of research design. The research design is divided into two categories one is qualitative and one is quantitative.
For the research analysis, the descriptive research design is the most suitable research design where all the research aspects are reflected in a good way. IFRS defines the transparency and also defines the international comparability of the company. The accurate financial information is collected with the implementation of IFRS in a company and additionally this also provides the investors the facility of investing in the market. The benefits of adopting the IFRS is that it provides the opportunity of greater comparability and also makes it globally accepted. Additionally, this is more flexible (Lawal et al. 2020). The descriptive design shows the authenticity of the research report where the research can apply main efforts in making the situational conditions related to the topic. Moreover, the benefits of adopting IASB provides comparability in the firm and can also mitigate the risk of the investors. This helps in cross border financing as well and also the facility of knowing the right investment. The conceptual framework of IASB is that it defines the financial position of the company and also provides the public interest. Moreover, the deductive approach method is enforceable and also makes it globally accepted and is responsible for the development of IFRS.
3.5 Data collection method
Data collection refers to the information and the insight of a document that are collected for the research study. As opined by Mohammed et al. (2021), it implies various methods and techniques and provides a clear and concise report where the data are inserted and has relation to the topic. Testing or a hypothesis of the outcomes is generally re-evaluated by the data collection method. Quantitative Research Approach through Secondary Data analysis of data has been used by the researcher as a data collection method for this research report. The information has been collected from various websites and newspapers about the conceptual framework of IFRS and IASB. The secondary data collection method is the most suitable method for collecting the data that saves effort and time. It is also cost effective and is also maintained in a cleaned and structured way. Additionally, this also puts a large volume in data and can control the process of collecting the data (Oluwagbemiga, 2021). Moreover, the benefit of gathering the information from the secondary data collection method of IASB and IFRS is that it is economical and also saves expenses and efforts.
These data are basically extracted from the company websites and the annual statements of a few companies that are located in Nigeria. As per the view of Ogunode and Salawu (2021), the implementation of the secondary data helps in reducing the gaps in the research report where all the data are collected from the stock exchange market of Nigeria. The IASB and IFRS are similar to each other as both of the ways are responsible for publication and deduction of accounting standards. The purpose of collecting the data is the way to set rules for the financial statements and many companies can make them transparent and consistent. It is also easily comparable all around the world. Data collection method could be termed a reliable source of information as the information regarding this research report is entirely based on the derived data.
3.6 Data analysis method
The data analysis method involves multiple activities that can be processed by using software or any other technique. As per the author Osasere and Ilaboya (2018), under this method, the data are gathered and then cleaned as per the main topics and then organised in a systematic way. The valuation and observation of the multiple data are segregated under this approach or methods can be easily quantified as per the data ascertaining methods. Quantitative data deals with examining the critical factors that are related to IFRS and IASB conceptual framework. With the help of quantitative data the information collected about the IFRS and IASB is accurate and has great objectives in future. This approach is better to know about the conceptual framework of IFRS and IASB as it is scientific and fast, acceptable and is also focused. Moreover, it can examine the performance of the company and can also access in making the prediction.
The concept of quantitative data deals with an evaluation of observations which are required to conduct the research report effectively and efficiently. As opined by Osho Augustine et al. (2021), this aspect of data analysis helps to reach the scope of the research report as well as the needful of the users. The quantitative data comprises various numerical responses which would be impactful for further proceeding with the research report. The quantitative data further helps the researcher to get a concise report that has evidential support from the data and the other collected sources (Suryanto and Komalasari 2019). There are various methods to follow the quantitative method which would help in further determination of the critical factors of the IFRS and its related aspects.
The most common methods of data analysis are “descriptive statistics and inferential statistics”. For this research descriptive statistics are required to evaluate (Osho et al. (2021). The modeling, measurement and mathematical element or behavior can be stated in a full concept.
The other methods are rarely used as they do not have much scope as the quantitative data analysis has. As mentioned by Sanniet al. (2020), the tools that are required for this data analysis are “the Graphs, linear regressions and hypothesis testing”. In order to get exact results from the research and from its findings, it can be analysed that the behaviour requirement of the data analysing method is a variable of the whole report (Shiferaw and Assefa 2020). The tools are mainly adopted for the analysis of the whole report as they need to follow each source to reflect the research methodology part in the IFRS segment.
3.7 Research Timeline
3.8 Research tools
Research tools are important mechanisms or strategic positions for the individual researchers to manipulate and collect the interpret data. The research tools are necessary and secondary research tools are involved by journals as well as books. The research instruments are necessary for quantitative research approaches (Ebaid, 2021). Research tools are the process of collecting as well as measuring and analyzing the data related to the subject. Numerous sources are involved in the secondary data collection methods such as books, journals as well as "Nigeria Stock Exchange-Corporate Disclosure". Research instruments are the perfect tools to collect and use numerous data during the research. Research tools and techniques are necessary to expose the values, options, and behavior of the affections. The important types of the research tools are Semrush, Jaaxy, SECockpit and google keyboard planner can be used as a research tool in the analysis.
Efficient research tools are necessary to identify the objectives of the data in numerical form. The overview of the secondary data is collected to explain the quantitative study. The particular practice eliminates the social issues of difficulties and that can be explained by the quantitative study of the research (Magliet al. 2018). The objectives of the secondary data involve some alternative perspectives to examine the appropriate positions of the research. Quantitative research efficiently explores the values as well as an understanding of the research. Apart from that, quantitative methods are involved by analysis of the numerical forms. In order to explore values as well as questions, individual researchers are using quantitative methods with individual perceptions.
3.9 Sampling procedures
Purposive sampling has been used to find out the background of the research and justify the research hypothesis.The null hypothesis of the research study is that the changes in IASB of Nigeria is not depended over the changes in IFRS.Research sampling is used by the individual researchers to efficiently minimize the crucial time to collect potential data from the investigators. The recommendations, as well as suggestions, are necessary which is involved in the data sampling process (Janowicz, 2018). The procedure of the research sampling is choosing the process of hypothesis about the entire research. Sometimes random sampling processes are involved in the research to satisfy random sampling methods. A random sampling process is necessary and that develops the method of quantitative data. Random sampling is the process and a lot of easier processes are measured by the random sampling process. Individual researchers can develop a wide range of quantitative research which is focused on purposive research sampling methods. Purposive sampling methods are necessary to identify the future challenges of individual researchers.
3.10 Ethical considerations
From the collection of the data in the particular research certain strategies are required to identify the major challenges. Real-life subjects are necessary to consider individual companies' policies in Nigeria. Research is considered a crucial organ and sometimes research cannot be concluded. Certain ethical aspects reliably follow the research topic which is important to determine the research policy (Akin, 2021). The various techniques of the research are makes possible solutions through the research design and practice. Various challenges are faced during the time of collecting the data from various websites and newspapers. The major challenge that has been faced by the companies during the time of implementation of IFRS and IASB are the fair value charges of accounting and can also be the loss of instability. This can prejudice and predict the financial statements and can also face the challenge in the guidance and approval of principles (Osho et al, 2021). With the various researches the impact on the assets and internal control n taxes and management can be faced. Sometimes the major issue of IFRS can be the lack of details and also the adoption cost that can be expensive sometimes. Ethical consideration can efficiently promote research aims to protect dignity.
The positive demand is an important way to enhance the satisfaction of individual researchers. The new, as well as innovative sources are necessary for ethical investors which is enhancing the basic awareness of the researchers. Economic Recovery Tax Act (1981) controls the economic downturn to develop three years tax cut plan. Sometimes rules and regulations of IASB is to stabilize the legal principles. Nigerian constitutional laws are related government systems of the country. Ethical considerations are set as the important principles to guide individual researchers. In order to, set different types of principles involved by the voluntary principles and constantly communicating with the results.
3.11 Research Gap
The application of the secondary qualitative data analysis has been made in this analysis as it helped in maintained in validating the financial activities into the procedures. However, the application of the primary data collection such as survey and questionaries would help more in evaluating the changes and recent trends of the IFRS and the IASB of Nigeria. The present research study is lack of the proper authentic information from the primary data collection point of view.
3.12 Summary
Based on the above context it can be summarized that research gaps are involves limited sources as well as poor instructional problems of the research. Purposive research sampling has been used in the particular research which is focusing on the relationship between one or more factors. The basic differences between the problem statements and gap analysis are necessary to minimize the research gap. The problems should be rendered by the investigation process but they can fulfil the basic requirements of the country. In order to, describe precious issues as well as difficulties of the research methods knowledge is required, and that sometimes minimizes significant sources in the research. The knowledge of accounting theory is necessary for the research methods which have followed by the IFRS methods (Agburuga, 2019). Ethical considerations are necessary for the research methods to identify the major gap. Random sampling is the process and a lot of easier processes are measured by the random sampling process.
Individual researchers are facing numerous problems due to research gaps and limited sources are involves which is identified in the conclusion. There are some important processes of the research methods such as research should be systematic and logical; the research should be reductive as well as action-oriented research. The three resources that is important in the research which is secondary sources, a simple hypothesis as well a review of the appropriate context of the research methods. Identifying the limitations and research gap is necessary and that can be explored important ideas of the actual performance (Akinola and Eventide, 2021). The desired performance is potential for the researchers and that involves relevant information. Research instruments are the perfect tools to collect and use numerous data during the research. A random sampling process is necessary and that develops the method of quantitative data. Random sampling is the process and a lot of easier processes are measured by the random sampling process.
4.1 Introduction
Findings in a research study refer to the principles that are followed to evaluate numerical or the quantitative results. The outcomes of the research and the suggestions for increasing the value of the topic are totally indicated in the findings part of the research. As the research study is organized in the country of Nigeria where the researcher has to examine the applications and implementation of the IFRS in the companies. As it is a new approach toward the expansion of financial or accounting standards in the companies. It is a widely used method all over the world. With the simple in-process and application for the business operations, the IFRS has a huge scope on the country for its implementation. For the purpose of the findings, the data are taken from legal and published sources.
The totality of results or the outcomes of the report is usually obtained through the methods or results where the implementation of the IFRS is examined. The secondary data and the published sources estimate that the application of the accounting standards is the most appropriately increment in the country's marketplace. Wide acceptance is showing changes in the current accounting stages of the companies situated in the country Nigeria. The results are analyzed by using the SPSS software where the regression, correlations and average ranges are elaborated. These numerical values show the acceptance of the IFRS model as per the published information. In the country, there are “32 statements of accounting standards” that are followed.
The accounted data are used from the Financial Statements and Reporting Entity of the companies operating in the country. Moreover, the Annual reports of various companies and the “Nigeria Stock Exchange-Corporate Disclosure” data are also ascertained in the finding sections. Pie diagrams are also evaluated to show the IFRS implementation and its impacts across the country. The discussion on the above findings shows the reliability of the research report where the researcher has explained all the qualitative terms.
4.2 Research Findings
Descriptive statistics
From the above table it can be ascertained that the descriptive statistics of the stock exchange values of the country Nigeria shows the bilateral effects. The values are ascertained from the stock exchange market site of Nigeria (wsj.com, 2022). Descriptive statistics show the sample of the data that are selected for the research study. These data are classified as “variable's mean, standard deviation, or frequency and Inferential statistics”. This value shows the Date, Open, High, Low, Close, and volume of the stock market expansion. It can be seen that the total no. of market presence in the Nigerian stock exchange is 145. The mean and standard deviation shows balance around 21.452069 and 2.9028834 in the open segment.
Regression analysis
The above table shows the coefficients that are presented in the stock exchange data. Here the dependent variable is the open market variable and predictors are selected through the volume of research. The coefficients are stated in total at 1213.449 and 144. The residuals are obtained at around 143 whereas the mean square is valued at 1213.449. The regression value stands at 1213.449. This show the selected variable provides exact outcomes that the researcher needs to convey through this research report. The dependent and independent variables enable the outcomes that the application of IFRS is noted and acquired accounting standards in the country.
Findings between the open and high variables
From the above table it can be stated that the dependent variable in analysing the coefficient is taken as the open value of the stock market. In this value, it can be seen that the dependent variable is assuming that the restricted value cannot imply more sources t5han the independent variable. From the records stated in the stock exchange, it can be seen that the variables are also interdependent with each other. The open and high variables are the string and end variable of this research approach.
The research findings show the authenticity of the research where the variables are compared with each other to gain equal competence. As per the view of Ab Abonwara et al. (2020), the variables are taken from the national stock exchange of the Nigerian market. The data are liable for describing the accurate implementation of IFRS in the country's firm. Any firm that is liable for operating in this competitive business scenario can reach its goals in a short span of time. The researcher has used experimental data that are used to gain informative visuals (Osho Augustine et al. 2021). These visuals are extracted from the ranges that are secured and implemented in the software to gain various aspects of the research margins in the form of the mathematical data.
The correlations, frequency distributions, and histogram analysis are also ascertained in the findings segment (Abdullahi and Abubakar 2020). The findings are done to show the current requirement of the organisation in terms of accounting standards. The measurable facts and factual information that are gained through methodology signify the validation of the findings.
Descriptive statistics
From the above table it can be stated that there is an equal value between both the variables that are high and low. Both the elements are showing equal balances. As stated by Akintelu et al. (2018), this is because the implementation of IFRS can make the companies more effective that are operated in the country Nigeria. In both segments standard deviation and mean deviation the values are obtained around 21.4 and 2.90. The mean value shows the centre value of their whole data set. Therefore the centre value of the data set is 21.452069 in both the variables. In descriptive statistics, the mean defines the entire dataset “with a single number representing the data's centre point or typical value” (Alawiye-Adams et al. (2018). Ascertaining the mean value is also useful in analysing the pieces of information from each observation of the dataset. The comparison of both the variables shows similar results.
The above table represents the descriptive statistic among the close and low variable where the values are same in both the conditions. As opined by EFUNTADE et al. (2021), this is because there are no other alternatives from where the lists can be prompted at each level of analysis. The value of mean sites is around 21.452069 and the value of the standard deviation is 2.9028834. The ascertainment of the variables operates at different levels but the results are the same due to the absence of other variables. The standard deviation under this analysis shows the “variance, or how dispersed the data observed in that variable is distributed around its mean”. This refers to the value of variance as double of the standard deviation where they approach varieties of details to get other variables (Godwin et al. 2018). Through this, it can be seen that the implementation of financial standards can bring favourable outcomes as the results of different variables are the same.
The relation between volume variable and close variable are ascertained though the above graph. From the table, it can be ascertained that the close variable has its mean value of around 21.452069 and the value of standard deviation is stated as around 2.9028834. In the context of the volume variable, the mean value stands at 5734140.04 and the std. Deviation value shows 5367100.997 balances. With the difference in both the value of the two independent variables, it can be seen that the expansion of IFRS in Nigeria shows higher results than its closing value. As per the view of Ibanichuka and Asukwo (2018), therefore the needs for accounting standards are more than in the organisations than in the other types of firms. It mainly shows the data point that is spread all over the data set of the descriptive statistics. This spread value shows the required volume of the financial standards in a specific region.
In the above data set that is shown in the table shows that the two variables of findings that is open and low variable. As per the author Junaidu and Ahmadu (2019), shows the comparative amount where the implementation of IFRS standards can show its accurate value in the existing companies. The std. Deviation under the descriptive analysis computes the difference between two variables. The variables can be independent or dependent based on the requirements of the findings. The researcher has found that subjective data provides the basis for comparison (Mbelwa and Mahangila 2020). This shows the competency of the findings through the mean and standard deviation ranges.
As the variables low and open shows similar results because of the relative valuation of the data set. As stated by Kolawole et al. (2019), in order to get a standard valuation the value of the standard deviation needs to be more than the value of the mean. However, from the above evaluation, it can be seen that the mean value is more than 21.45206 than the standard value of 2.9028834.
Calculation of Correlation
The correlation is obtained by identifying the variables open and high. These two variables have the main scope of the findings. As stated by Muhibudeen and Abdulrahman (2020), it is where the required value of the IFRS in the Nigerian companies is extracted through the application of the dataset acquired from the stock exchange website. Open variables show the value in an ideal form which is 1. Pearson Correlation for this variable opined has the same value. This shows that the results obtained from the correlation are positive. From there, it can be stated that the researcher's topic for research gained the most favourable outcomes (Odoemelamet al. 2019). From the published sources the 145 units show the same results that show the need for standards of financial accounting must be implemented in the firm across the country. In the context of high variable, the results show the same where Pearson Correlation shows the value at1.000. This is also the same as the open variable.
From the above table it can be stated that the variables low and close shows the ideal results, as the data set are accurately put in the format. As per the author Ogunmakin et al. (2021), the value of both the variables is obtained at an ideal level that is 1. This shows the positive correlation between both variables. The movementand of the two independent variables in coordination with one another shows a positive degree. These correlation findings show the appropriate decision of the accounting authorities of Nigeria in implementing the IFRS laws and norms in the country (Oseniet al. 2018). Adaption of the set of standards made the organisations more vulnerable in providing the details of the accounting operation in a short span of time.
There are mainly four types of correlations that are “Pearson correlation, Kendall rank, Spearman, and the Point-Biserial correlation” (Olaoye and Ibukun-Falayi 2020). However, in the context of the research Pearson correlation is calculated as it has more flexible norms that help in analysing the data set in a simple way.
The above frequency graph shows the open variable and its aspects in the IFRS adaption across the country. It can be seen that the range of the output has the greater value compared to other values (Onodiet al. 2018). The no. of units is 145 and the value of the mean stands at 21.45 and the standard deviation at 2.90.
The above-mentioned graph shows the high variable where the frequency level is stated high regarding the research topic. As opined by Olowolaju (2019), this high frequency clearly states the requirement of the IFRS and its norms in the country at the current time. It also shows the highest value at 24000 with 145 units.
4.3 Conclusion
Based on the above findings in different topics of the descriptive statistical analysis it can be concluded that the results show positive aspects of IFRS and its implementation. The above variables analysis, frequency charts and the correlation analysis show the accurate requirement of the accounting standard. The descriptive analysis shows the dependency of each variable by comparing it's in an alternate position. Alternatively, the variables are also considered to be the void part of this research. It can be said that the values that are obtained in each calculator show a positive review of the IFRS standards. The value of correlation also shows the ideal rate where the firm can generate more revenue and growth by adopting the latest and most flexible accounting standards.
It can be concluded that there is no void data ascertained in the research findings. The researcher has used various alternatives that can provide a clear and concise report on the related topic. The chapter concludes with the exact data set and the results that are determined through the descriptive statistical analysis.
5.1 Introduction
This chapter discloses the discussion on the above findings that are made by the researcher. Under this segment, the variables and the graphs made on the data outcomes. It also evaluates the frequency data that are assumed to be the greater range of the above data set. Basically, all the researched data are acquired in a quantitative approach through the secondary data analysis. This shows the research reports' authenticity in numerical values. The quantitative discussion implies more clear understanding than the qualitative reports. Findings are done by acquiring all the statistical methods such as regressions, correlations, descriptive statistics, calculation of coefficients, and frequency table. From the above findings the pie diagrams, graphs and charts are drawn for the detailed analysis.
The data that is taken for the findings show imperial results that are beneficial for the firm as well for the researcher (Abdulrahman and David 2018). The data shows the legal views of implementing accounting standards in the firm where the published data that are acquired by the other sources are presented in the research report. The variables such as Open, High, Low, Close, and Volume are alternatively analysed in the descriptive statistics. As per the author Aggreh et al. (2018), here the ranges mean, median, standard deviations and other methods are done to show the accuracy of IFRS and other accounting measures. All the five variables are ascertained in the findings part.
This made the users of the researcher's report more interesting and useful to gain knowledge also. Bivariate correlations are also estimated through the above data set.
5.2 Analysis of data
Frequency table showing variable (low)
From the above table it can be seen that the valid frequency is numerically expressed at different stages. As per the view of Osho et al. (2021), the different stages comprise Frequency, Percent, Valid Percent, and Cumulative Percent. A different valid frequency is showing different cumulative percentages. The frequencies are evaluated in the ranges from 23.4000 and 23.4500. In a few cases, the ranges are stated around 18.5500 and 18.8000. As per the author Paulinus et al. (2018), the total unit reflects the no. of data that are ascertained regarding the IFRS and the other accounting standards implementations. The Total of the frequency table shows the total no. of units is 145, no. of per cent is 100.0, and the total no. of valid per cent is 100.0. The cumulative frequency or per cent is obtained by adding each valid percentile.
The ranges hold different frequencies where the units are showing changes in the different levels. As stated by Phan et al. (2018), the table can be compared to the low and close variables of the data set. The tables show different margins and ranges in computing the exact frequency that is needed for the implementation of the latest accounting standards. In the context of high-end variables, the ranges showing the same units are 145, and the percentile results are also stated in the same way. 100 is the total percentage that is valid in accomplishing the methods of the findings. The frequency table shows the method of “organizing raw data in a compact form by displaying a series of scores in ascending or descending order” (Putsai and Mkhize 2021). The sorting of the data set to optimize the deliverables in a quick span of time constitutes the ranges in ascending order.
The setting up organisation standards the implication of the IFRS accounting system must be known by the owners. As per the view of Sanniet al. (2020), this is because as the findings show the comparable results through which the application of a set of standards can be effective for the country. As well as it can provide negative effects on launching the new accounting system in all the companies operated in the country of Nigeria. As the results from the frequency distribution show the overall impact in a positive way. As opined by Tsehay and Eyuel (2021), the total cumulative per cent is stated as around 100. This shows the practical assumption of leading the IFRS across the country.
The above pie chart is obtained by analysing the whole data set of the national stock exchange of Nigeria. From the above diagram, it can be ascertained that The range between 16000 to 18000 is the greatest no. where the researcher gets the maximum responses. The ranges between 239500 and 26000 are the lowest rangers as they got fewer values. Therefore it can be analysed that the more no. of sources can simply more data in the respect of IFRS implementations. As per the author Soetan (2018), each slice of the pie chart “represents the count or percentage of the observations of a level for the variable”. These ranges are compared with the close variable pie diagram. Both variables are constituted of different ranges where each slice reports each range at different levels. The diagram resembles over data that are constituted in the descriptive statistics.
Discussion regarding close and volume of Nigerian stock exchange
A typical ‘stock market’ is characterized by the equity which represents the ownership in a particular operation. Correlation describes the relationship between two variables which is volume and close. Above 0.5 correlation has been considered as b and almost .263 Pearson correlation is computed. The correlation is near 1 which is a close Pearson correlation. The correlation and coefficient indicate the accurate relationship between the b and weak relationships. That indicates the important variables and b correlations are bigger than close variables. Correlations and coefficients are two important variables that explained the b correlation techniques. A b correlation would be perfect when the value is zero neutral.
A positive correlation is measured by the above 0.5 and that indicates the strength of the associations. The difference between the two variables is recognized by the result of correlation and sometimes 0 indicates weak correlations that can be changed in specific directions of the statistical value. A b correlation is not enhanced after 1 and less than 1 is assumed as a perfect negative correlation. Less than 0.5 correlations is assumed to a weak and two variables are measured by the positive correlations. The relationship between two variables such as volume and close is measured by the linear relationship.
Discussion regarding T-test of stock variables
A T-test is a statistical test that is generally used to compare two or more variables. The open and high values of Mean, standard deviation, and slandered error mean are compared by the T-test of stock variance.
One sample of T testing is described as the statistical hypothesis test which is used to determine the difference between the variables. The test value is almost 0 and there is no main difference between the open and high variables. Less than 0.5 correlation is assumed to a weak and two variables are measured by the positive correlations.
The difference between mean, std. Error mean and std. The deviation is measured by the amount of variability of the individual values or data. If the standard deviation is 1 that can be considered b and less than 1 is considered as weak. The difference between standard deviation and the sample size is described as the more accurate the estimate.
The close and volume variable of statistics describes the differences between standard deviation and standard error. The sample means to depend on the standard deviation and sample size which shows a statistical index of an estimator. A one-sample test is necessary to compare the mean and std. Deviation and can describe the samples of the correlations. The T-test variables, as well as the small sample size, are described and following some statistical tools to calculate the sample mean.
The difference between standard deviations is described by the normal distribution and that is significantly represented by the sample of standard deviations. A positive correlation is measured by the above 0.5 and that indicates the strength of the associations. Above 0.5 correlation has been considered as b and almost .263 Pearson correlation is computed. Pearson correlation coefficients are basically used to demonstrate the linear relationship with the variables.
Bivariate correlation
Simple bivariate correlation is the process of important statistical techniques that are generally used to determine the relationship between two or more variables. The correlation coefficient has been measured by the values of different types of variables such as close and volume. Bivariate correlation statistically indicates the linear relationship between the two or more variables. The strength of the specific relationship is describing how to perfectly close the relationship. The open and high two variables are described by the statistical tools and that can significantly involve the listener relationship. Numerical & numerical and numerical & categorical are the two important bivariate correlations that are randomly examined by the important statistical tools. The two variables are necessary to recognize the liner relationship with the individual variables.
Correlation is the statistical term that can describe the term of two or more variables. A ‘statistical correlation’ is the appropriate term for a relationship with the variables and that can be compared to the variables which are close and volume. Above 0.5 standard deviations are known as b variables that measure and compare the negative or positive correlation. Correlation is calculated by the covariance as well as the other variables and that can be determined by the relationship with the variables.
There are some limitations of covariance such as poor directional relationship between the strength and weakness. That cannot show strategic directions of the individual associations. A sometimes correlation measures the positive infinity and the perfect value or relationship with individual variances. The purpose of the correlation is to define the relationship between the individual variables by using statistical tools. Sometimes the variables are connected with the correlations and that can be appropriate tools to investigate the relationships. The positive and negative correlations are the common things in statistical tools that describe the same directions to increase the variables of coefficient.
5.3 Conclusion
Based on the above discussion it can be concluded that the valid frequency is numerically expressed at different stages. Less than 0.5 correlations is assumed to a weak and two variables are measured by the positive correlations. The relationship between two variables such as volume and close is measured by the linear relationship.
6.1 Conclusion
Based on the above discussion it can be concluded that monitoring financial reports are necessarily involved by the IASB. The statement of IASB is assumed during the preparation of financial drafts which can develop public interest. In order to, fulfill the high-quality requirements of IASB objectives the accounting position is necessary which have been used by different financial committee. Apart from that, IASB is needed to maintain and rebuild appropriate cooperation between accounting standards. Assertive communication is necessary to maintain promotional activities and which is efficiently communicate with them. The "Nigerian federalism executive council" has to try to approve IASB's role to rebuild and communicate accounting ideals. The concept of quantitative data is useful for efficiently reporting the specific research. Quantitative data analysis is useful for enhancing the new scope of the research and that can be compared to numerous numerical activities which fulfill the basic needs of the research.
6.2 Linking with objectives
Linking with objective 1: Global framework by disclosing financial information systems
The research design depends on the quantitative data that discloses the financial information process systems of Nigeria. Sometimes high-quality enforcement of financial conditions efficiently correlates share price of the market (Vijai, 2018). The impact of the ‘slandered accounting system’ is identified by the adoption of IFRS. “Financial reporting standard board” compares overall economical pieces of information with the help of a global framework. The ‘financial reporting standard’ compares numerical values and identifies the capital market. IASB can able to facilitate financial reporting systems and that is correlate between the financial information systems as well as the firm’s performance.
The financial policy of IFRS is necessary and can disclose the financial information process and Nigeria also follows a global framework for disclosing financial information system. Individual forms of Nigeria are following some rules of IASB which is necessary to identify the financial information systems. Identifying financial, as well as nonfinancial performance is necessary and that can be described by the IASB policy. The general rules of the IASB are focusing on the global framework of the firm to identify the overall financial information systems (Mohamed et al. 2020). IFRS also indicates the relationship between the firm and financial performance by using a global framework.
Linking with objective 2: Non-compatibility for monetary decisions
The financial policies depend on the two main premises to identify the effectiveness of financial position. The three necessary instruments are reserve requirements, discount rate as well as open market operations. The monetary decision is necessary for the individual business firm and the policy of IFRS is necessary to set actions against the difficult situations. In order to, achieve a sustainable economy or financial growth is important by following IASB policies. Sometimes profit and loss of the firms are determined by the position of the stock market which is necessary (Pavithranet al. 2018). Expansionary as well as contraction policies are necessary that increase more opportunities for the particular research.
The cost of capital, as well as investment decisions, is coming under the monetary policy and that can be controlled by the governance. Sometimes delegated the responsibility of the monetary policy is based on the oversight responsibilities. In order to meet the financial requirements of the form’s monetary policy is necessary which is following some processes of IASB. Some challenges are disclosed by the monetary policy which is efficient and correlates with the market-based share price (Crawford et al. 2018). High-quality enforcement of the financial conditions is based on the ‘financial reporting standard’ and that is also useful to identify the capital market.
Linking with objective 3: Monitor financial reports
Order to monitor financial reports of the business firms is necessary and which is following IFSB policies. The IFRS associations are needed to identify the financial reports to identify and improve structural performance (Malo-Alain et al. 2021). “International financial reporting” identifies the major financial aspects of market operations such as interest rates, bank credit as well as other economical variables. There are some limitations of monetary policy such as that it does not resolve economic problems. The price stability depends on feasible aspects of monetary policy. The main instruments of monetary policy are cash reserve, reserve repo rate as well as open market operations. In order to, monitor financial reports is necessary that issue and prepare financial position by the prominent conditions.
Identifying the benefits of the stock market is necessary and that can be involved more feasibility to resolves economic debt. The important benefit of a “financial reporting system” is to identify market value by following some general rules of IASB. IFRS policy is important during identify the ultimate creation of profitability by following some major rules. Lack of transparency is another difficulty that is sometimes minimized by the performance measurement systems. The “international monetary system’s” are prepared by the high-quality financial pieces of information systems to record individual financial records (Ezenwoke and Tion, 2020). Open market operations as well as identifying the public debt are change industrial business techniques and that can be correlated with the other variables. Apart from that, IFRS is identifying the interpretations of data and exposure to individual drafts by identifying the technical matters.
Linking with objective 4: Analyzing financial statements with accurate information
“Financial statements analysis” is determined financial performance and also describes company’s financial profile. The financial transactions are accurate way and that can be measured in financial transactions such as profitability as well as expenses (Savova, 2021). In order to, identify economical characteristics maintain the company's strategy, and analyze the economical position. The quantitative data analysis methods are an essential way to convert numerical data after collecting from books, and journals. Identifying the financial aspects are more important because it describes the current aspects of accounting characters. The financial statements are essential to measuring an expense as well as total profitability.
The financial statement analysis is a necessary way and that has been following some basic rules of IFRS. In order to analyze financial pieces of information, involves the understanding of financial debts. The financial information process is necessary to compare overall profitability and financial expenses (Sanniet al. 2020). IFRS maintains the compliances between Nigeria and correlates financial information systems. The financial analysis and reports are need to accurate and that can be controlled by sharing critical financial information process. In order to, analyzed the requirements of the data is needed to follow each financial source.
6.3 Recommendation
"International standard accounting board" is useful to analyze the financial pieces of information. The value of the stock exchange is necessary that ensure the stock market variables. IFRS globally compares the overall pieces of information process and that need to improve economical efficiency for improving capital allocation techniques. IFRS is the standard framework that has been followed to analyze financial pieces of information in Nigeria. Need to focus on the individual investors and that can compare financial information accurately. Investment techniques are necessary to identify the capital market and that can constantly improve transparency as well as accountability. The main objectives of IFRS are to develop public demands and identify the requirements of financial reporting (Nurkashevaet al. 2018). “International financial reporting standard” indicates the accounting positions. The cumulative frequency and covariance are indicated by the statistical structure of the research and that need to be more accurate to combine numerous questionnaires.
In order to develop public interest, the objectives of IFRS are necessary and that can be following some basic rules of global accounting standards. The requirements for a financial position is depend on the high quality as well as compatibility that help to identify financial impacts (Nguyen et al. 2020). The IFRS policies are continuously focusing on the financial performance that helps minimize financial difficulties. IFRS policy is needed to be more transparent to identify the financial activities. The financial impacts are necessary and that help to follow some accounting principles that involve reliability as well as accountability. There are some changes are involves during the adoption of IFRS such as more accurate financial pieces of information, enhancing compatibility, and improved global operation. Sometimes legal considerations are followed by the 'fair value measurement' of the operation. The global accounting framework is necessary and can describe the compatibility of different counties.
6.4 Limitations
Identifying the limitations is necessary for IFRS to minimize the basic difficulties. The cost of implementation of the small business organizations is necessary but that required too much knowledge and experience. Lack of detailing as well as the wrong perception of cost is the biggest limitations of IFRS. Inflexibility and time consumption are the other difficulties and individual investors are diverted during the common situation. Sometimes alternative financial treatments are chosen to restrict the operational difficulties. The directional relationship between the restricted scope and alternative treatment minimize inflexibility and involves basic benefits to decrease unusual cost. The tax compliance burden is another difficulty that is the biggest limitation of the iterating accounting systems. The development of publications as well as IAS is necessary but that required too much knowledge as well as experience. Global consistency is needed for auditing as well as enforcement which is minimized by the lack of efficiency.
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