IFRS ADOPTION AND THE IMPLICATION FOR ACCOUNTING AND TAXATION IN NIGERIA: A CONCEPTUAL FRAMEWORK

Abstract

The study examined the implications of the adoption of International Financial Reporting Standards (IFRS) for accounting and taxation in Nigeria, with particular emphasis on the need for transparency, improved financial reporting, and enhanced accountability. The paper explored the conceptual foundations and practical implications of IFRS adoption for accounting and taxation in the Nigerian context, drawing on Agency Theory, Stakeholder Theory, and Institutional Theory. From an accounting perspective, IFRS adoption was driven by the need to reduce information asymmetry between managers and investors, in line with Agency Theory. IFRS enhances the relevance, verifiability, and faithful representation of financial disclosures. While the adoption of IFRS in Nigeria has improved the credibility of financial reporting and strengthened stakeholder accountability, it has also presented significant taxation challenges, including the misalignment between Nigerian tax laws and IFRS principles, as well as the absence of comprehensive tax guidelines that adequately address IFRS-based reporting. In light of these findings, the study recommends that the government should provide continuous training for accounting professionals on IFRS principles and implementation. Furthermore, the government should review and reform existing tax laws to ensure alignment with IFRS principles and facilitate effective implementation.