Cletus O. Akenbor1, Harvest I. Major2
(1. Federal University Otuoke, Bayelsa State, Nigeria; 2. Rivers State University of Education, Port Harcourt, Nigeria)

 

Abstract: Globalization and development in international accounting tend to obscure the quality of corporate reporting based on GAAP and this has given rise to the adoption of International Financial Reporting Standards (IFRS). This study therefore examines how elements of financial statements are measured based on IFRS. A review of extant literature suggests that: property, plant and equipment are measured with the revaluation model; stock valuation is based on FIFO; Goodwill is based on revaluation model; depreciation of asset is reported on straight-line method; equity method is used in the measurement of equity investment; non-equity investments are reported at fair value; long-term liabilities “are valued at current debt equivalent, short-term” liabilities are reported at fair value; revenues are measured on fair value; expenses are reported at actual amount; while agriculture and mineral resources are valued at selling price. It was therefore recommended that there is dare need for proper and intensive training for professional accountants, auditors, and other preparers of financial statements to acquire relevant skills and knowledge to meet IFRS reporting requirements.

 

Key words: IFRS; measurement; corporate reporting; financial statement elements; GAAP

 

JEL codes: M