IMPAIRMENT ACCOUNTING PRACTICE AND FINANCIAL REPORTING REGULATORY SUPPORT IN NIGERIA: THE VIEW OF FINANCIAL REPORTING ACCOUNTANTS

Innocent Okwuosa
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Innocent Okwuosa: Department of Accountancy, Postal: Caleb University, Imota Lagos, https://research.icanig.org

International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), 2021, vol. 10, issue 1, 19-40

Abstract: The literature shows that impairment accounting is complex. This study examines impairment accounting practice in Nigeria, its complexity perception and the support from Financial Reporting Council of Nigeria (FRCN) using a survey research design. Data were collected through a survey of 60 financial reporting accountants, across industries. The data were analysed using descriptive statistics and simple regression analysis. Three hypotheses were tested. Overall result shows impairment accounting practice in which recoverable amount is “fair value less cost to sell” and a disposition towards immediate recognition of impairment loss. Internal capacity to engage in impairment testing exists as opposed to outsourcing. There is a perception of complexity of impairment accounting practice and an expectation that FRCN provides support to financial reporting accountants. This support is however not provided. The study therefore recommends issuance of guidance by FRCN to assist these accountants develop capacity to handle individual IFRS implementation in Nigeria.

Keywords: Accountants; impairment accounting; perception; regulatory support; financial reporting (search for similar items in EconPapers)
Date: 2021
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