PROPOSED FRAMEWORK FOR DISCLOSURE OF ACCOUNTING INFORMATION UNDER IFRS BY NIGERIAN FINANCIAL INSTITUTIONS

Nigerian listed firms have been reporting their financial report based on the Statement of Accounting Standards (SAS) to the period of 2011. From the period 2012 all listed firms are to report their financial information based on new accounting reporting (IFRS). Hence, this paper explores the new accounting reporting standard in Nigeria with the aims of producing a proposed framework that will determine whether association between accounting numbers and stock prices or returns is more value relevant under new accounting regime (IFRS). Consequently, this paper suggested the use of accounting disclosures from the annual reports of financial institutions (asset and liabilities, income statement, other comprehensive income) to determine their association with stock prices or stock returns. The study also suggests framework and model for this association to highlights the significant of relevance accounting information disclosed by the financial institutions in Nigeria after the adoption of IFRS. Despite the significance of this study to the literature, it will further assist the policy maker, regulators and professional in the area of accounting to understand the significance of new accounting reporting to the investors and Nigerian capital market. Therefore, it is recommended that the Nigerian financial institutions to adopt the framework introduced in this study on the value relevance of accounting information after the adoption of IFRS for assets and liabilities and income and expenditure.