Accounting Standards in Nigeria, the journey so far

ABSTRACT This research work examines the Accounting standards in Nigeria and how far the Board as gone with the adoption of International Financial Reporting Standard. The important of Financial Reporting Council of Nigeria and IFRS is to increase the foreign direction of investment and assurance of easier access to external confidence in the quality assurance system of financial reporting in public and private section entities in Nigeria, In the course of this research work we observed what Nigeria will lose without the Financial Reporting Council of Nigeria and adoption of IFRS. We recommend that FRC must come up as a matter of urgency with the specific areas for customization and prescribe the appropriate accounting treatment. The gaps between the current legal framework of financial reporting and significant change required for compliance with IFRS requirements must be indentified and addressed.
Key words: Accounting standards, financial reporting council, Nigeria.

INTRODUCTION Accounting Standard is defined as an information system through which financial and monetized information is generated for economic, social and political decisions (Izedonmi, 2001). Statements of accounting standards are developed to ensure a high degree of standardization in publishing financial statements. They provide necessary guides on how accounting information should be prepared and presented in order to enhance the value of its contents and facilitate thorough understanding.
Nigerian Accounting Standards Board Act No 22, 2003 was repealed and Financial Reporting Council of Nigeria Act 2011 Enacted. This paper therefore attempts to vigorously study and highlight the accounting standard in Nigeria the journey so far. The FRC is expected therefore to issue and regulate accounting actuarial, valuation and auditing standards in the country. It has been widely argued that the passage of the Financial Reporting Council would help to address the current institutional weaknesses in the regulation, compliance and enforcement of standards and development of robust arrangements for monitoring and enforcing compliance with financial reporting standards in Nigeria. The Author is hopeful that the paper will also increase the general awareness of accountants as well as the preparer and users of accounting information in Nigeria regarding thissubject as well as recommend the way forward to improve upon accounting practices in Nigeria.