Authors: Ibitomi Opeyemi, Gehya E. Filli, Hyellaki Javan
Abstract
The adoption of international financial reporting standards has become an important issue in many countries of the world, especially as it affects financial reporting quality. Hence, this study examines the impact of international financial reporting standards on the financial reporting quality of registered pension fund administrators in Nigeria. The study covers a population of 22 pension fund administrators, and a ten-year period of data was analyzed from 2013-2022. The study used an ex post facto research design. Secondary data were collected from pension funds administrator’s annual reports and accounts. Data were evaluated using simple regressions. The statistical analysis showed that IFRS proxies by income smoothing have a positive significant impact on revenue recognition. By implication Pension fund administrators in Nigeria can be compared globally with those aligned with IFRS. While timely loss provision has a positive but insignificant impact on revenue recognition. By implication, their effect is not adequate to be deemed significant. This suggests that other criteria or procedures are more important in determining revenue recognition. The study recommends that regulatory agencies should enhance efforts in their oversight responsibility to ensure overall compliance with IFRS with a particular focus on the accuracy and transparency of revenue recognition methods Pension fund administrators should also evaluate the assumptions and procedures used in provisioning to ensure that they are realistic and represent current market conditions.
Keywords: IFRS, Income smoothing, timely loss provision, revenue recognition