An Assessment of Compliance with Disclosure Requirements of IAS 41 (Agriculture) By Listed Agricultural Firms in Nigeria


Agricultural firms, Compliance, Disclosure, Nigeria

How to Cite

Ibrahim, N., & Kurfi, S. A. (2019). An Assessment of Compliance with Disclosure Requirements of IAS 41 (Agriculture) By Listed Agricultural Firms in Nigeria. American International Journal of Agricultural Studies, 2(1), 9-18.


This study examined the extent of compliance with disclosure requirements of IAS 41 by agricultural companies listed on the Nigerian Stock Exchange (NSE) for the period of 5 years (2013-2017). The data for the study were obtained from the published financial statements of the sampled firms for the period under review from which a compliance index were constructed, The tools for analysis used were the qualitative grading using a compliance index and the one way ANOVA purposely to test the hypotheses proposed. The study observed that three out of the four Companies achieved more than 70% with overall mean scores of 76.02%. This shows that majority of the agricultural firms in Nigeria strongly complied with the disclosure requirements of IAS 41. Based on the findings the study recommends among others that firms should strive at all times to comply with all regulatory and statutory requirement in the preparation and presentation of financial statements, giving the fact that it is a set of documents that prescribe the performance of the reporting entity. The Financial Reporting Council of Nigeria should publish annually the compliance status of all listed firms in Nigeria; so that the compliance status of every firm will become known to all interested users of financial statements; and also the Council should urge external  auditors of firms to ensure that their clients are complying with the requirements of IASs issued by the International Accounting Standards Board (IASB).


Al-Jabri, H., & Hussain, M. M. (2012). Compliance with International Accounting Standards requirements among Omani listed companies. Journal of Administrative and Economic Sciences, Qassim University, 5(2), 75-105.

Al-Mutawaa, A., & Hewaidy, A. M. (2010). Disclosure level and compliance with IFRSs: An empirical investigation of Kuwaiti companies. International Business & Economics Research Journal, 9(5), 33-50.

Al-Shammari, B. (2011). Factors influencing the extent of mandatory compliance with International Financial Reporting Standards: the case of Kuwaiti listed companies. Journal of International Business and Economics. Volume: 11 No 4.

Arthurs J. D. & Busenitz L. W. (2004) Entrepreneurship Theory and Practice: the boundaries and limitations of agency theory and stewardship theory in the venture capitalist/entrepreneur citizenship. (28)2: 145

Azevedo, G.M.C. (2007) The impact of International Accounting Standard 41 (Agriculture) in the wine industry [online]. Instituto Superior de Contabilidade e Administração da Universidade de Aveiro. Available from:

Baigrie, I. (2014) An analysis of the financial reporting compliance of South African public agricultural companies. University of Johannesburg Available at:

Ballas, A. A., & Tzovas, C. (2010). An empirical investigation of Greek firms’ Compliance with IFRS disclosure requirements. International Journal of Managerial and Financial Accounting, 2(1), 40-62.

Barde, I. M. (2009). Nigerian oil marketing companies and compliance with the Requirements of Statement of AccountingStandard (SAS) 2. In K. I. Dandago, Contemporary Issues in Accounting, Auditing and Taxation (pp. 104-125). Kano: Triumph Publishing Company

Bayboltaeva, N.A., Makulova, A.T., Abaeva, K., Alibekova, B.A. & Bolysbayeva, A. (2015) Problems of development of accounting of peasant (farm) enterprises in Republic of Kazakhstan’, Asian Journal of Social Sciences, 11(14):211-218.

Biljon, M. V. (2016) An application guideline for the fair value accounting of biological assets A Ph.D's Dissertation, Department of Accounting Science, University of South Africa

Clarke, T. (Ed.). (2004). Theories of corporate governance: The philosophical foundations of corporate governance. Routledge Publisher; London: 1st edition (October 1, 2004) ISBN 10: 041532307X ISBN 13: 9780415323079

Deegan, C. and Unerman, J. (2011). Financial accounting theory. Second edition. Berkshire: McGraw-Hill.

Hodgdon, C., Tondkar, R. H., Adhikari, A., & Harless, D. W. (2009). Compliance with International Financial Reporting Standards and auditor choice: New evidence on the importance of the statutory audit. The International Journal of Accounting, 44, 33–55.

Elad, C., and Herbohn, K. (2011). Implementing fair value accounting in the agricultural sector. Scotland: Institute of Chartered Accountants of Scotland. Available at:

Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(3), 301-325.

Gonçalves, R. and Lopes, P. (2015). Value-relevance of biological assets under IFRS[online]. FEP working papers, School of economics and management. University of Porto. Available from:

International Accounting Standards Board (IASB). (2013). International Accounting Standards (IAS) 41 Agriculture [online]. United Kingdom. Available from:

Kothari, S. P. (2000). The role of financial reporting in reducing financial risks in the market. In E. S. Rosengren, & J. S. Jordan (Eds.), Building an infrastructure for financial stability. Federal Reserve Bank of Boston Conference (Vol. 44).

Nyor, T. (2010). Determinants of compliance with the disclosure requirements of accounting standards by Nigerian banks. Bayero International Journal of Accounting Research, 4(1), 34 – 48.

Siyanbola, A. A.; Musa, U M and Wula, T. J. (2014) An assessment of compliance with disclosure requirements of IAS 16 by listed agricultural Firms in Nigeria Scholarly Journal of Agricultural Science Vol. 4(4), pp. 201-212 April, 2014 Available online at http:// ISSN 2276-7118 © 2014 Scholarly-Journals

Siyanbola, A. A., Zaharadeen, A. and Adegboye, K. (2014). Assessment of Compliance with Disclosure Requirements of SAS 3 and IAS 16 by Listed Agricultural Firms in Nigeria. International Journal of Applied Research and Technology. 3(11): 117 – 129. Available online at http:// ISSN 2277-0585

Sa’idu, S. & Umar, D. (2014) An Assessment of Compliance with IFRS Framework at First-Time Adoption by the Quoted Banks in Nigeria, Journal of Finance and Accounting, Vol. 2, No. 3, 64-73 Available online at © Science and Education Publishing

Silva, R., Figueira, L., Pereira, L., and Ribeiro, M. (2012). Process of Convergence to the International Financial Reporting Standards: An Analysis of the Disclosure Requirements of CPC 29/IAS 41. Available at

Vukmirovic, N., Arsenovic, D., Lalic, S. & Milovanovic, D. (2012). ‘Evaluation of accounting acquisition of biological assets and property’, Third international scientific symposium, Agrosym Jahorina, 723-727.

Yahaya, K. A. (2011). Compliance with statement of accounting standards by Nigerian quoted banks. European Journal of Economics, Finance and Administrative Sciences (34), 104-112.

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


Download data is not yet available.