EXAMINATION OF COMPLIANCE WITH DISCLOSURE REQUIREMENTS OF IFRS 16 BY LISTED LOGISTICS FIRMS IN NIGERIA

This paper surveyed the compliance level with the disclosure requirements of IFRS-16 among transportation/logistics firms listed in the NSE. The sampled 15 firms that claim to adopt and apply IFRS-16 starting effective January 2019. We examined their varying degree of disclosure compliance based on their audited annual reports for 2019 & 2020. A compliance checklist index based upon the IFRS compliance, presentation and disclosure checklist 2021 and KPMG Guide to annual financial statements – Disclosure checklist 2020 was adapted for this study. We found that disclosures were generally not comprehensive enough in terms adequacy of the disclosures relating to adoption of the new standard, judgement made by management in the application of the company’s accounting policy, insufficient entity-specific information, when explaining their accounting policy for leases. Most of the entities failed to disclose the measurement policy applied to right of use assets at transition and how the company’s incremental borrowing rate is determined. The surveys also provide indications that the level of compliance differs among the subsector ranging from low to moderate level of disclosure. This level of insufficiency of disclosures is an indication of lack of necessary transparency to investors regarding exposures, risks, uncertainties, and leverage which raise doubt over whether the disclosure objective of IFRS16 had been met, as envisage by the standard.