Harmonization of Accounting Policies and Frameworks: Issues and Challenges for A Developing Economy

Abstract

This study critically examines the harmonization of accounting policies and frameworks in Nigeria, with particular emphasis on the adoption and implementation of International Financial Reporting Standards (IFRS). It explores the key issues, challenges, and prospects associated with aligning Nigeria’s financial reporting practices with globally accepted standards. The findings reveal that while harmonization offers significant benefits such as improved transparency, enhanced investor confidence, and greater access to international capital markets, the implementation process is fraught with substantial challenges. These include a shortage of technical expertise, high transition and compliance costs, weak regulatory oversight, legal and institutional incompatibilities, and a general lack of awareness and education among stakeholders. Despite these barriers, the study identifies promising prospects for Nigeria, including increased global competitiveness and the potential for more consistent and reliable financial reporting across sectors. The study concludes that achieving effective harmonization requires a multifaceted approach involving investment in professional training, legal reforms, stronger regulatory institutions, and widespread stakeholder sensitization.

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