FINANCIAL REPORTING AND ACCOUNT RECEIVABLE: EVIDENCE FROM MANDATORY IFRS ADOPTION

Authors

  • Yahaya Alhassan 4Department of Accounting, Faculty of Management Sciences, Taraba State University, Jalingo, Taraba State, Nigeria.
  • Murtala Yusuf Forty-Four, Ph.D Department of Accounting, Faculty of Management Sciences, Taraba State University, Jalingo, Taraba State, Nigeria.
  • Aliyu Usman Shehu Ph.D Department of Accounting, Faculty of Management Sciences, Taraba State University, Jalingo, Taraba State, Nigeria.
  • Heman Dauda Department of Accounting, Faculty of Management Sciences, Taraba State University, Jalingo, Taraba State, Nigeria

Abstract

Abstract
This study examined the influence of financial reporting on trade credit: with evidence from mandatory
IFRS adoption. Reviewing the importance of the IFRS on financial adoption examined the pre- and post
adoption of IFRS on trade credit amongst quoted manufacturing firms. Data for the study was retrieved
from the annual report of the Nigeria Exchange Group between 2007-2022 which represents the pre
adoption period and 2012-2022 representing the post-adoption on the trade credit of these firms. The
manufacturing firms were selected for the study. Findings from the study revealed that all the adopted
variables of trade credit were higher in post-IFRS than in pre-IFRS. The results also revealed that firms
with lower growth and lower profit tend to extend accounts receivable. Findings further suggest that trade
credits do not act as an effective financial policy for a firm’s growth in Nigeria. The study recommends a
continuous and consistent adoption of trade credit and adherence to the disclosure requirements and policy
of IFRS.

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Published

2025-02-04

How to Cite

Alhassan, Y., Forty-Four, M. Y., Shehu Ph.D, A. U., & Dauda, H. (2025). FINANCIAL REPORTING AND ACCOUNT RECEIVABLE: EVIDENCE FROM MANDATORY IFRS ADOPTION. TSU-International Journal of Accounting and Finance, 3(3), 45–60. Retrieved from https://tsuijafc.k-publisher.com/index.php/tsuijaf/article/view/124

Issue

Vol. 3 No. 3 (2024): October, 2024

Section

Articles