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

FAIR VALUE GAINS AND LOSSES AND PERCEPTIONS OF EARNINGS QUALITY: EVIDENCE FROM NIGERIAN DEPOSIT MONEY BANKS

Description

FAIR VALUE GAINS AND LOSSES AND PERCEPTIONS OF EARNINGS QUALITY: EVIDENCE FROM NIGERIAN DEPOSIT MONEY BANKS

Authors

Gospel J. Chukwu, Godwin Israel Ebirien, Fiito K. Peekate and Amos Namapele

Abstract

The need to increase the quality of reported earnings in Nigeria has led to many efforts, including the adoption of International Financial Reporting Standards, which introduced fair value measurement for certain assets and liabilities. This study determined whether the perception of investors on the quality of earnings reported by banks is affected by the fair value gains and losses (FVGL) reported in income statements (NI) and other comprehensive income (OCI). The study used cross-sectional research design, and analysed data obtained over the period 2012 to 2016, from thirteen banks in Nigeria. Two hypotheses were tested using ordinary least square (OLS). The result revealed that investors' perception of earnings quality is not associated with the FVGL reported in NI and OCI. We attribute this result to learning curve and preponderance of unsophisticated investors in the Nigerian stock market. The paper recommends regular training and retraining on accounting for financial instruments for preparers and users of financial statements, auditors and regulators.

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