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IFRS as a Tool for Enhancing Full Disclosure
The Role of IFRS in Ensuring Full Disclosure of Relevant Information by Business Organizations
English
507 b
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The study examined the extent to which business organizations disclose relevant information in their financial statements; it examined the accounts that are required to be prepared under IFRS and the disclosure requirements of IFRS; it looked into the factors determining the extent of disclosure; and considered the role of IFRS in ensuring full disclosure and other benefits of IFRS. The study made use of both primary and secondary data. The data collected from the respondents were presented and analyzed using descriptive statistics such as tables, frequencies, percentages etc. The hypotheses were tested using Chi-square statistical test.It was found out in the study that there is a great need for the full disclosure of relevant information, as all the respondents agreed. It was also found out that the adoption of IFRS ensures full disclosure of relevant information, as about 79% agreed. It was found out in the study that the adoption of IFRS does not guarantee the accuracy of financial statements, as about 65% disagreed. The study concluded that full disclosure of relevant information is made possible by strict compliance to the various disclosure requirements of IFRS.
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