Vol. 2, Issue 10 (2015)
International Financial Reporting Standards (IFRS) and Financial Reporting in the Oil and Gas Sector: Conceptual Perspective
Author(s): P.A. Donwa, C.O. Mgbame, A. Olateru-olagbegi
Abstract: The study examines the implications of International Financial Reporting Standards (IFRS) on financial reporting in Nigerian oil and gas sector. This paper aims to have a comprehensive review on the disclosure practice of oil and gas activities in compliance with IFRS 6 and identify whether there is a difference in disclosure practice between pre-IFRS and post IFRS financial reporting. The study employed mainly the secondary data from journals, contents of annual reports and existing literatures. The findings of the study revealed that the adoption of IFRS by various jurisdictions around the world is derived with mixed reactions and the proponents of IFRS adoption argue that a single global accounting standard has the prospects of improving information quality across the borders and will foster cross border listing investments. They further argue that, with a single set of global accounting standards, comparability of financial statements would be achieved.