History of Nigerian Accounting Practice: Progress and Contemporary Issues

Abstract

This study provides the background to the Nigerian financial reporting environment and discusses the progressive journey from the Nigerian Generally Accepted Accounting Principles (GAAP) to the adoption of International Financial Reporting Standards (IFRS). The analysis of the progress in Nigerian financial reporting regulation from 1957 to post IFRS adoption in 2010 is discussed in this study. Discussion of the findings follows a genealogical approach to posit development of financial reporting regulation in Nigeria. From the analysis, the time accounting was first practised in Nigeria cannot be traced to a particular date. However, the formalisation of accounting in Nigeria is discussed in this study. It was found that the regulation of accounting practice in Nigeria begins in 1957. Lastly, challenges and obstacles to accounting practice in Nigeria are discussed, particularly post IFRS adoption.