INTERNAL GOVERNANCE MECHANISMS AND INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) COMPLIANCE IN NIGERIA

The study examined the impact of internal governance mechanisms on compliance with IFRS disclosure in Nigeria in the year of IFRS mandatory adoption. The study used multiple regression in a sample of 154 listed companies in Nigeria to determine how internal governance mechanisms affect IFRS compliance. The result shows that internal governance mechanisms through board independence, audit committee accounting expertise, and audit committee size have a positive impact on IFRS compliance in Nigeria. The study recommends the use of large proportion of non-executive directors in the composition of board of directors as recommended in the corporate governance codes in Nigeria to ensure proper monitoring and compliance with regulation. Due to the limitation of the study in terms of period of study and the variables examined, the study recommends further research on how other internal governance variables, such as internal audit function, affect IFRS compliance and the period of the study should be extended to more than one year.