Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

ACHIEVING TRANSPARENT IFRS FINANCIAL REPORTING IN NIGERIA AND GHANA: THE B & B MODEL EFFECT

Description

ACHIEVING TRANSPARENT IFRS FINANCIAL REPORTING IN NIGERIA AND GHANA: THE B & B MODEL EFFECT

Authors

NWOYE, Ugochukwu John , ADENIYI, Segun I. and ABIAHU, Mary-Fidelis Chidoziem.

Abstract

In Africa, the transparency quality of financial disclosures appears to rank below expectations after several years of adopting IFRS. Some scholars advocate for the deployment of multi investigative models as a complement during Financial Statements audit to help secure reasonable transparency in IFRS financial reporting. As a result, this study intends to ascertain the effectiveness of Benford’s Law in evaluating the faithful representation quality of IFRS financial disclosures of public listed companies. It also intends to determine whether Beneish Ratios are suitable complements in evaluating faithful representation quality of financial disclosures. Being casual comparative research, the 2009 - 2011 and 2012 - 2016 IFRS Annual Reports of 44 listed manufacturing companies in Ghana and Nigeria were evaluated. Analyses were executed using Benford's Law and Beneish Ratios (B & B Model), Chi-Square, Multiple Regression and Mann Whitney U test. Findings obtained showed that Benford's Law, upon proper deployment and application, is effective in evaluating the faithful representation quality of financial disclosures in IFRS based Financial Statements of public manufacturing companies in Nigeria and Ghana. Also, Beneish Ratios were observed to be suitable complements in evaluating the faithful representation of IFRS financial disclosures of these companies studied in both countries. Based on the above findings, it was concluded that expected reasonable transparency in IFRS financial reporting is not the case in Nigeria and Ghana despite both countries' compliance with IFRS

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