Consumer Goods Companies in Nigeria

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Department of Finance, University of Ilorin


This study examined the difference in the performance of Nigerian consumer goods companies by comparing financial ratios prepared under International Financial Reporting Standards (IFRS) period and Nigerian Generally Accepted Accounting Principles (Nigerian GAAP) period. Secondary data sourced from published annual reports and accounts of 12 , consumer goods companies quoted on the Nigerian Stock Exchange from 2010 to 2014 were' usedfor the study. The estimation technique used for analysis was Mann- Whitney U test. The study revealed that while there are differences in liquidity and profitability ratios for both Nigerian GM? and IFRS periods, the results are however not statistically significant except for current ratio that decreased in IFRS period with a p-value of 0.02. In conclusion, IFRS relies on fair value accounting which affects assets, liabilities and equity items in the Statement of Financial Position. Accounting for leases. impairment and employee benefits also affect expenses, liabilities and equity items. However. only current ratio showed a significant difference at 5. It was recommended that regulatory authorities should continue to monitor compliance with IFRS requirements in its totality by companies in Nigeria.



International Financial Reporting Standards, Nigerian GAAP, Performance, Nigerian Consumer goods companies