Fair Value Measurement versus Historical Cost Accounting: A Comparative Effect on Firms’ Performance in Nigeria

This study comparatively examined the effect of fair value measurement (FVM) and historical cost accounting (HCA) on the performance of quoted firms in Nigeria. Data were sourced from the online published accounts of ten quoted firms for a period of ten years segregated into HCA regime (2007 – 2011) and FVM regime (2012-2016). Descriptive Statistics (Mean) and Inferential Statistics (Paired sample t-test) were employed in the analysis of the data collected with the aid of Statistical Package for the Social Sciences (SPSS) version 21. Findings from the analysis revealed that a positive but insignificant difference exists in the profit after tax of the firms between the FVM and HCA regimes; and that fair value measurement exerts negative but insignificant effect on the earnings per share and return on equity of the firms. The study thus concluded that fair value measurement as it is being practiced and implemented by Nigerian firms, exerts no significant change in firms’ performance as was reported under the HCA regime. It therefore recommended, among other things, that the International Accounting Standards should review the current provisions on the fair value practices in the International Financial Reporting Standards to ensure improved operations of firms across national borders. Key Words: Fair Value Measurement, Historical Cost, performance, Earning per Share, Profit after Tax, Return on Asset

Evaluation of Key Determinants of Fraud Free Financial Report: a Focus on Nigeria

The study evaluated the key determinants of fraud free financial reports. Descriptive research design was used. Two null hypotheses were tested using Z-test for proportion, F statistics and Microsoft excel 2010 toolpak. The study revealed that there is significant relationship amongst the following variables; Accounting Standards, Corporate Governance and Internal Controls in determining Fraud Free Financial Report. Furthermore, that in Nigeria to obtain Fraud Free Financial Report emphasis was on Accounting Standards, Internal Controls and Corporate Governance in this order and, Auditor’s Independence, Whistle Blowing and Accountants’ Education received little or no attention. It also revealed that from extant literature Accounting Standards are tools for combating 25% of the eight elements in fraud management cycle while 75% of them are within the purview of Forensic accounting. Hence it recommended that forensic accounting courses should be incorporated into the curriculum of professional accounting institutes in order to equip their members with sufficient skills that would enable them effectively perform their duties as public accountants

The Implications of Board Independence and Foreign Ownership on Audit Quality of Manufacturing Firms in Nigeria

This study investigated the implications of board independence and foreign ownership on audit quality of manufacturing firms in Nigeria. The specific objectives of the study are to examine the effects of board independence as well as foreign ownership on audit quality of manufacturing firms quoted in Nigeria. Secondary data were carefully collected from a total of fifty eight (58) quoted manufacturing firms in Nigeria for the period (2010 – 2018) and the binary model of regression (logit, probit and gombit) was properly used for hypotheses testing. The outcome reveals that board independence had a positive and insignificant influence on audit quality while foreign ownership had a positive and significant influence on audit quality. The study therefore recommends that composition of the board should be such that its function is not undermined and one of such ways is to have an appropriate mixture with non-executive directors. Also having foreign ownership could enhance audit quality given the different corporate cultures they may possess

The Implications of Board Independence and Foreign Ownership on Audit Quality of Manufacturing Firms in Nigeria

This study investigated the implications of board independence and foreign ownership on audit quality of manufacturing firms in Nigeria. The specific objectives of the study are to examine the effects of board independence as well as foreign ownership on audit quality of manufacturing firms quoted in Nigeria. Secondary data were carefully collected from a total of fifty eight (58) quoted manufacturing firms in Nigeria for the period (2010 – 2018) and the binary model of regression (logit, probit and gombit) was properly used for hypotheses testing. The outcome reveals that board independence had a positive and insignificant influence on audit quality while foreign ownership had a positive and significant influence on audit quality. The study therefore recommends that composition of the board should be such that its function is not undermined and one of such ways is to have an appropriate mixture with non-executive directors. Also having foreign ownership could enhance audit quality given the different corporate cultures they may possess