The Effect of Acceptability and Enforceability of International Financial Reporting Standard (IFRS) on Global Accounting Standard Convergence

Abstract

In spite the important of the global accounting convergence of IFRS in firms operations of various countries in terms of globalization of financial markets, standardizing the diverse accounting policies around the globe and the facilitation of high quality, transparent and comparable information in financial statements. But then, only few developing and even developed nations give concerned on such global accounting convergence of IFRS. In line with this, the objective of this paper is to examine the effect of two variables i.e. IFRS acceptability and IFRS enforceability on such global accounting convergence of IFRS through the perceptions of preparers and users of financial reporting. Data of the study were collected through self –administered and online survey, in which 300 questionnaire was sent to the preparers and users of financial reporting in Nigeria. The study used convenient sampling technique; data were analyzed using Statistical Package for Social Science (SPSS) version 19. Descriptive statistic, factor analysis, correlation matrix and finally, multiple regression analysis were carried out. The result findings of the analysis revealed that, IFRS acceptability and IFRS enforceability has significant positive relation with the global accounting convergence of IFRS. Finally, conclusion was provided and the direction for future research was also provided.

DOI: 10.5901/mjss.2014.v5n10p295