Compliance with Statement of Accounting Standard on Leases by Firms in Nigeria : An Operating Lease Perspective

Disclosure of accounting information in accordance with stated standards is of great interest to academics, policymakers, businessmen and other users of financial statements. Consequently, this study assessed the degree of compliance with statement of accounting standard on leases, operating lease aspect. Data were collected from annual reports of thirteen sampled firms that are quoted on the Nigerian Stock Exchange and members of Equipment Leasing Association of Nigeria. A disclosure model developed from the framework of ratio analysis was used to analyze the data. It was established that the firms complied to certain extend with the provisions of the standard. Based on this, the study recommends the establishment of an Independent monitoring body to oversee and enforce compliance with the requirements of the standard, strengthening capacity of the existing regulatory bodies for effective performance and clarification of the roles of the NSE and SEC in the monitoring and enforcement of the compliance