Ratio Analysis in International Financial Reporting Standards: Issues and Challenges

UKPAI, U.I.

Department of Accountancy

Akanu Ibiam Federal Polytechnic Unwana – Afikpo, Ebonyi State Nigeria

E-mail: theigwes@yahoo.com

ABSTRACT

This study focuses on ratio analysis in International Financial Reporting Standards (IFRSs) Environment: Issues and Challenges, which becomes a relevant study now. The adoption of IFRS by many nations has put many accountants off the former methods of doing accounts, especially in developing countries like Nigeria. The objective of this study is to treat ratio analysis in IFRS Environment, touching issues relating to terminologies as well as fully identifying the limitations of ratio analysis in that perspective. The study used analytical/illustrative tool. The study discovered that IFRS had impacted a lot of changes in terminologies and arrangements on the Financial Statements cum ratio analysis, which is based on financial statements. It recommended that Financial Reporting Council of Nigeria (FRC) should wake up to deeper trainings of educators and accountants in IFRS applications.