Compliance of Selected Firms Listed on Nigeria Stock Exchange with Requirements of International Accounting Standard 16

AKINDEJOYE, John Adetunji and ILUGBUSI, Segun Bamidele (2019) Compliance of Selected Firms Listed on Nigeria Stock Exchange with Requirements of International Accounting Standard 16. Nigerian Studies in Economics and Management Sciences, 2 (2). pp. 1-10. ISSN 2645-3061

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Abstract

The study examined the degree of compliance of some quoted firms with International Accounting Standard 16 (IAS 16) which prescribed accounting treatment for property, plant and equipment. We sampled ten listed firms on the Nigerian Stock Exchange from manufacturing, conglomerate and banking sectors. We collected secondary data from the published financial statements of the firms for the period 2015-2017. The dependent variable was company compliance index while the independent variables were company total actual compliance and required total IAS compliance. We analysed the data using compliance index and found that the average compliance level was 84% which met that Nigerian quoted companies complied strongly with IAS 16. Despite the high level, the firms had compliance deficiencies in depreciation and impairment. We recommended that Nigerian quoted firms should improve on their compliance in these areas.

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