Implementation of International Financial Reporting Standard and Constraints in Corporate Governance Issues in Nigeria's Entrepreneurial Systems

Every registered business needs to assess the growth and performance of the organization which often are panel-beaten to conform to expectations in the financial statement. This has often led to sudden collapse of businesses that are reckoned with as well–positioned. Hence the introduction of guidelines and standards to alleviate such problems is brought to fore to effectively curb the hideous acts of the Boards and management of corporations. The paper thus seeks to review issues in governance activities and the implementation of the International Financial Reporting Standards (IFRS) in Nigeria with a view to proffering possible steps to arrest the situation. The study uses primary data obtained through copies of the questionnaire administered to accountants in administration and academics and secondary data obtained from journals, seminar papers, Internet and textbooks to elucidate governance issues and IFRS implementation in order to determine the extent of compliance. Analysis of primary data was by the use of linear regression. Study found that the extent of compliance anchors on the level of awareness of the accounting personnel. Equally, awareness of IFRS standards influences company and institutional compliance (p=0.016); Secondly, with model result accounting for 79.5% variation, observance of IFRS stipulations has significant relationship with effective governance processes. Also, the application of International Financial Reporting Standards in Nigeria is still very new and requires monitoring for compliance, more so that it is often difficult for management not to comply with board’s directive given the test result number three highlighting that awareness has a significant relationship with efficient governance process (p=0.003). The study therefore concludes that, though management cannot circumvent board’s directive it rests on the International Accounting Standard Board (IASB), to enforce adherence. It recommends enlightenment programmes for both management and directors on IFRS, while stiff penalties and fines are awarded recalcitrant corporations. KEYWORDS: CORPORATE GOVERNANCE, STANDARDS and COMPLIANCE