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The influence of cultural diversity on the convergence of IFRS: evidence from Nigeria IFRS implementation

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Abstract

This study investigates the influences of companies’ cultural diversity on International Financial Reporting Standards (IFRS) adoption in Nigeria. The diverse response to IFRS adoption is a phenomenon that necessitates further investigation to understand the reasons some companies adopt IFRS while others do not. Previous studies have investigated preparers of financial statements’ adoption of IFRS and there is a dearth of research on the role of cultural difference on IFRS adoption. However, little has been explored to understand the impacts of cultural variables on IFRS adoption. Using a self-administered survey questionnaire and logistic regression, this study identifies that financial statement preparers’ levels of professionalism, transparency, flexibility, secrecy, uniformity and the statutory control dimensions of cultural factors impact IFRS adoption at different magnitudes. The study notes that IFRS adoption can only be successful when accountants develop the relevant technical expertise in IFRS prior to implementation. This includes practical training in IFRS requirements, accounting assets and liabilities valuation, recognition of income or liabilities and disclosure of economic events before and after the reporting period consistent with IFRS 10.

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Acknowledgements

We would like to thank the students and computer centre operators who helped in administering the survey questionnaire in Lagos, Abuja and Benin City Nigeria. We also acknowledge all the research participants who completed the questionnaires.

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Authors and Affiliations

  1. Faculty of Business, Management and Legal Studies, Toi Ohomai Institute of Technology, Tauranga, New Zealand

    Jude Edeigba

  2. Department of Business and Finance, Department of Accounting, Finance and Economics, Faculty of Commerce, Lincoln University, PO Box 85084, Christchurch, New Zealand

    Christopher Gan

  3. Department of Accounting, Finance and Business Law, Radford University, Box 6951, Radford, VA, 24142, USA

    Felix Amenkhienan

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  1. Jude Edeigba
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Correspondence to Jude Edeigba.

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Edeigba, J., Gan, C. & Amenkhienan, F. The influence of cultural diversity on the convergence of IFRS: evidence from Nigeria IFRS implementation. Rev Quant Finan Acc 55, 105–121 (2020). https://doi.org/10.1007/s11156-019-00837-0

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