DOES RISK MANAGEMENT COMMITTEE AFFECT COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS 7 (IFRS7) BY LISTED DEPOSIT MONEY BANKS IN NIGERIA?

Abstract

This paper empirically assesses the relationship between risk management committee effectiveness and IFRS7 compliance. A sample of fourteen out of nineteen listed banks in Nigeria from 2016- 2020 were selected for this study. The period was specifically selected because IFRS 7 has been fully matured and in use for the past five years. Moreover, this period have readily available data on the floor of the Nigerian stock exchange and the banks web sites. Empirical results using OLS regression show significant positive relationship between the variables (DV & IVs), which revealed high compliance of 81 percent. The paper recommends intensive monitoring and enforcement by the CBN, NDIC and the newly established Financial Reporting Council of Nigeria (FRCN) and personal effort of the financial institutions through follow up implementation and enhanced enforcement mechanism so as to sustain and even improve the level of compliance in the long run.