EVALUATION OF THE IMPACT OF INTERNATIONALLY RECOGNIZED ACCOUNTING STANDARDS IN ACCOUNTING EDUCATION IN NIGERIA (A CASE STUDY OF LAGOS STATE UNIVERSITY)

CHAPTER ONE

INTRODUCTION

1.1 Background to The Study

There is no business where the use of money is not important. The success or failure of such an undertaking depends on the financial resources of a business entity supported by sound management. Therefore, there is no business entity that does not require accountants. Accounting recognizes that people live in a world of scarce resources. Since resources are limited, people try to conserve them, use them efficiently, and identify and promote those who use them efficiently. The standard of living increases through the efficient use of resources.

Accounting plays an important role in achieving a higher standard of living as it helps identify efficient and inefficient users of resources (Anibaba, 1990; Dyer, 1999). Wolcott (2010) also recognized the need for accounting education and stated: “There is little doubt that the current content of professional accounting education, which has remained essentially the same over the past 50 years, is generally inadequate for the future accountant .” There is a growing gap between what accountants do and what accounting educators teach. Accountants whose training remains narrow will find it more difficult to compete in an expanding profession."

An accountant's education and training takes a form that shapes him or her to exhibit such rare qualities as maintaining a strict standard of professional skills, expertise and ethics that one would not want to be associated with failure, fraud or embezzlement or the unnecessary desire to rock the boat (Inanga 2000; Sterling 2003). Worldwide, accounting education involves imparting knowledge of accounting principles and standards to individuals. This could also take the form of contributing to a body of established knowledge or practices. In recent years, the introduction of internationally recognized accounting standards such as International Financial Reporting Standards (IFRS) has been a significant development in the global accounting landscape. These standards have been adopted by numerous countries to ensure consistency and comparability of financial reporting.

As globalization drives the need for harmonized financial reporting standards, the adoption of IFRS has been critical to improving transparency and comparability in financial statements (Nwulu & Okoro, 2020). In Nigeria, the Financial Reporting Council of Nigeria (FRCN) mandated the adoption of IFRS for all public institutions and large private companies, which resulted in sweeping changes in the accounting curricula of various educational institutions (Adeyemo, 2021).

This change requires a comprehensive assessment of how these internationally recognized standards impact accounting education and the preparation of future accountants. The integration of IFRS into the Nigerian accounting education framework aims to align local practices with global standards, thereby fostering a competitive workforce (Obazee, 2019).

Accounting programs have begun to integrate IFRS content into their curricula, reflecting the need for graduates who are well versed in these standards. However, this integration is not without challenges. The effectiveness of IFRS education in universities and professional institutions may vary, impacting students' readiness to navigate the complexities of global financial reporting (Afolabi, 2022). As accounting educators strive to implement these standards, it is critical to understand the impact on student learning and professional development. In addition, the effectiveness of IFRS implementation in accounting education also depends on the training of the teachers themselves. Many lecturers may lack sufficient knowledge of IFRS, which could lead to discrepancies in teaching quality (Onyema & Adebayo, 2021). To ensure that relevant knowledge and skills can be taught effectively, professional development programs and ongoing training for educators are essential.

A well-prepared teaching staff can significantly improve the educational experience and ultimately the competency of graduates entering the accounting profession. This review examines the impact of IFRS on accounting education in Nigeria and assesses both the benefits and challenges faced by educational institutions. By examining curriculum changes, teacher preparation, and student outcomes, this research aims to provide insights that can guide future accounting education reforms. Ultimately, it highlights the importance of aligning accounting education with international standards to prepare students for a dynamic and increasingly globalized business environment (Ijeoma & Chukwuma, 2023; Olayiwola, 2023; Okafor, 2022).

1.2 Statement of The Problem

The implementation of International Financial Reporting Standards (IFRS) in Nigeria has prompted a significant transformation in accounting education, yet several challenges persist. Many educational institutions struggle to adequately integrate these internationally recognized standards into their curricula, leading to gaps in knowledge and skills among accounting graduates (Adeyemo, 2021).

This misalignment raises concerns about the preparedness of students entering the workforce, where familiarity with IFRS is increasingly essential for compliance and financial reporting (Obazee, 2019). Consequently, there is a pressing need to evaluate how effectively these standards are being taught and understood within Nigerian accounting programs.

Furthermore, the effectiveness of IFRS training is often hindered by a lack of qualified educators who possess sufficient expertise in these standards (Nwulu & Okoro, 2020). Many instructors have not received comprehensive training in IFRS, resulting in inconsistencies in the quality of education provided.

This situation not only affects the educational experience of students but also compromises their ability to perform in professional environments that require adherence to global accounting practices. Therefore, a systematic evaluation of the impact of IFRS on accounting education is essential to identify the challenges and propose actionable solutions that can enhance the curriculum and improve the overall quality of accounting education in Nigeria.Top of Form

1.3 Objectives of The Study

The main objective of the study is to examine the Impact of Internationally Recognized Accounting Standards in Accounting Education in Nigeria. Specific objectives of the study are:

1. To assess the Extent of Adoption of International Accounting Standards (IAS) in Accounting Education in Nigeria
2. To evaluate the Impact of IAS Adoption on Accounting Graduates' Employability and Career Prospects
3. To examine the Effectiveness of IAS Adoption in Enhancing the Quality of Financial Reporting in Nigeria.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

1. To what extent have Nigerian accounting curricula been aligned with the International Financial Reporting Standards (IFRS) and other IAS?
2. Does the adoption of IFRS and other IAS in Nigerian accounting education improve graduates' employability in the global job market?
3. Has the adoption of IFRS and other IAS in accounting education led to an improvement in the quality of financial reporting by Nigerian companies?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no significant impact of internationally recognized accounting standards on accounting education in Nigeria.

1.6 Significance of The Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Accounting Education sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analyzed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organizations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of The Study

The study is delimited to Lagos State University. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of The Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of The Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis are discussed in this chapter.

Chapter Four highlights’ data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.

1.10 Definition of Terms

1.  International Financial Reporting Standards (IFRS)

 A set of accounting standards developed by the International Accounting Standards Board (IASB) to provide a common global language for business affairs, ensuring transparency, accountability, and efficiency in financial markets.

2.  Accounting Education

The process of teaching and learning accounting principles, practices, and standards within educational institutions, focusing on developing the skills and knowledge necessary for students to pursue careers in accounting and finance.

3.  Impact Evaluation

 A systematic assessment of the changes that can be attributed to a particular intervention or program, in this case, the implementation of IFRS in accounting education, including its effects on student competencies, curriculum development, and employability.

4.  Curriculum Development

 The process of designing and organizing educational content and learning experiences in accounting programs to ensure alignment with internationally recognized standards, enhancing the relevance and quality of education provided to students.

5.  Stakeholders

 Individuals or groups that have an interest in the outcomes of accounting education, including students, educators, employers, regulatory bodies, and professional accounting organizations, all of whom may be affected by the adoption of IFRS in educational settings.

6.  Quality Assurance

 A systematic approach to ensuring that accounting education programs meet established standards and benchmarks, particularly in relation to the integration of IFRS, aimed at improving educational outcomes and maintaining institutional credibility.

7.  Professional Competency

The ability of accounting graduates to apply knowledge, skills, and ethical considerations in real-world financial reporting and analysis situations, which may be influenced by the extent to which IFRS is incorporated into the accounting curriculum and training.