Fair value measurement and financial statement reporting of listed conglomerate companies in Nigeria

Abstract

The study examined effect of fair value measurement on financial statement reporting of listed conglomerate companies in Nigeria. This study adopts a survey research design which allows for employing a comprehensible research instrument in gathering data for the study. Descriptive statistics is employed to analyze quantitative data using regression analysis. The study found that fair value measurement reliability has a positive significant effect on financial statement reporting, fair value measurement transparency has a positive but insignificant effect on financial statement reporting and; fair value measurement sufficient precision has a positive insignificant effect on the financial statement reporting of conglomerate companies. The study concludes that financial reporting differs significantly when measured with fair value and historical costs. Thus, the study recommends that conglomerates companies should adopt a hybrid form of measurement (measurements which entail both fair and historical values) in reporting their activities to reflect actual value creation. Furthermore, International Accounting Standards should review the current provisions on the fair value practices in the International Financial Reporting Standards to ensure improved operations of firms across national borders.