Original Research Article | OPEN ACCESS

Adaptation, Adoption and Convergence of IFRS: An Amalgamation of The Right Strategy for Nigeria's Transition

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Received: May 29, 2020        Accepted: June 19, 2020        Published: 26 June 2020

Citation: Adaptation, Adoption and Convergence of IFRS: An Amalgamation of The Right Strategy for Nigeria's Transition. Account Tax Rev 2005; 4(2):88-98 doi:

© 2005 The authors.
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Abstract

Rapid globalisation of financial markets and the proliferation of multinational corporations (MNCs) have also given rise to demands for more internationally comparable financial reporting. This has led to the facilitation of the reproduction and diffusion of specific accounting and accountability practices across the world by international organisations such as the World Bank and International Monetary Fund. This study the IFRS adaptation, adoption and convergence an amalgamation of the right strategy for Nigeria's transition.Since the official announcement of the adoption and implementation of IFRS, there have been attempts by regulatory agencies across the globe to be part of the revolution of which Nigeria decided to choose adoption as the strategy for joining the change.IFRSs are believed to reduce information cost as the capital flow becomes more internationalised. Therefore, it is cheaper to have one set of single financial statements without translation and more comfortable for investors to understand than statements prepared with different GAAPs. The study concludes that professional accounting bodies should align their continuing professional education requirements with IFAC guidelines. The study, therefore, recommends that adequate resources such as human resources, materials resources and financial resources should be put in place to support the sustainable implementation of IFRS

Keywords: IFRS, Adaptation, Adoption, Convergence, NGAAP.