International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

International Financial Reporting Standard: Principle, Practice and Prospect
Banji Fajonyomi, James S. Kehinde

The international financial reporting standard (IFRS) was introduced by the international Accounting standard board (IASB) to mitigate against the resent past word economic depression which to a reasonable extent was due to differences in financial reports across the globe based on the concepts and the Generally Acceptable Accounting principle (GAAP) and standard used by different nations that may lead to faulty financial decision being taken by various users of the financial reports. This study therefore evaluated the ability of the IFRS to be able to redress the mistake and difference of the past in financial reporting across the globe. The survey method was adopted using structured questionnaire. The chi-square was used to test for the significance of the various constructs and variables adopted for study .The results revealed that the IFRS will bring about standardization in financial reports across the globe. It will also ensure unique reporting styles and will ensure comparability and acceptability of financial reports across nations. The IFRS will also reduce but may not be able to eliminate financial misrepresentation, however, will improve on the true and fairness of financial reports across nations. It will improve on the flow of investment and financial resources across nations of the world. It was recommended that adoptability of the IFRS should be total and be given legal backings across the nations. Also machineries should be put in place to ensure adequate training on the use of the standard. It was also recommended that overreliance should not be placed on the standard without adequate measure to enforce compliance and ensure disciplinary action against noncompliance across the nations of the world, compliance committee should be set up to ensure this across the nations.

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