International Journal of Social Sciences and Management Review

FAIR VALUE ACCOUNTING AND CORPORATE REPORTING IN QUOTED OIL FIRMS IN NIGERIA (2012-2022)

Authors: Dr. Ihenyen Confidence Joel & Tantua Bralayefa (Ph.D.)

ABSTRACT

The use of fair value accounting and corporate reporting in quoted oil firms in Nigeria (2012-2022) was investigated in this study. An ex-post facto research design was used, with data collected from the Central Bank of Nigeria (CBN), the World Bank Report, and the United Nations Conference on Trade and Development (UNCTAD) from 2023. The Ordinary Least Square Method was then used to analyze the relationship between Interest Rate (INR), Discount Rate (DSR), and Present Value Cash Flow (PVCF). The results showed that there was a significant relationship between interest rate and corporate reporting, but not between discount rate and corporate reporting. Moreover, there was a significant relationship between the present value of cash flow and corporate reporting. Therefore, the study recommends that oil firms in Nigeria should employ fair value accounting in order to accurately report their financial performance. This requires firms to incorporate an appropriate interest rate and discount rate when calculating the present value of cash flows.

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