Effects of COVID 19 Pandemic On Accounting and Financial Reporting in Nigeria

European Journal of Accounting, Auditing and Finance Research
Vol.9, No. 6, pp.50-63, 2021

Print ISSN: 2053-4086(Print),
Online ISSN: 2053-4094(Online)
EFFECTS OF COVID-19 PANDEMIC ON ACCOUNTING AND FINANCIAL REPORTING
IN NIGERIA
Raimi Adekunle ANISERE-HAMEED

Department of Accountancy
School of Management and Business Studies,
Lagos State Polytechnic, Ikorodu, Lagos, Nigeria.
ABSTRACT: The predicament that befell the entire world as a result of the Covid 19 has been
a matter of concern researchers. This paper hereby examines the effects of COVID-19
pandemic on accounting and financial reporting in Nigeria. The objectives of this paper are to
ascertain the differences between the published financial reporting before and during COVID-
19 era; determine how firms in Nigeria reported events after the reporting period during the
COVID- 19 era as recommended by the Financial Reporting Council; ascertain the extent to
which COVID-19 affects the going concern of firms in Nigeria; determine how COVID-19
affects the interim financial reporting affected; and to examines how firms in Nigeria reported
changes in expected credit losses for financial assets as stated in the guideline recommended
by Financial Reporting Council during COVID-19 era. The study employs cross-sectional
approach where data were collected at a particular point in time from different companies.
Secondary financial data was collected from multiple sample sources to ensure a fair
representation, namely: The Manufacturing sector, financial sectors and conglomerates of the
Nigerian economy. Independent t-test and Logit Binary Regression Model was employed to
test the hypotheses of the study using SPSS version 25. This paper revealed that there is
significant difference between the published financial reporting before and during COVID-19
era; COVID-19 has significant effect on the events after the reporting period, going concern
of firms in Nigeria, interim financial reporting, and COVID-19 has significant effect on
changes in expected credit losses for financial assets. Arisen from the findings of this study,
this paper recommended that management of industries should embrace all the COVID-19
precautions, and government should salvage this devastating effect of COVID-19 by
channelling more funds to the sectors affected by the pandemic.
KEYWORDS: accounting, COVID-19, financial reporting, pandemic
INTRODUCTION
The World Health Organization (WHO) declared Corona Virus (COVID-19) to be a public
health emergency on January 30, 2020. As at March 31, 2020, almost the whole of Pakistan is
in some state of lock down. The federal and state governments and other federating units have
implemented various measures to contain the spread of the COVID - 19, including restricting
the flight operations at the airports, curtailing intercity movements through buses and trains,
temporary closing of businesses, schools etc.
50
@ECRTD-UK https://www.eajournals.org/
https://doi.org/10.37745/ejaafr.2013
Vol.9, No. 6, pp.50-63, 2021
Following this WHO declaration, the Coronavirus Preparedness Group was constituted on
January 31 in Nigeria, a country WHO categorized as one of the high-risk African countries
with respect to the spread of COVID-19. Nigeria is also among the vulnerable African nations,
given the weak state of the healthcare system (Marbot, 2020).
The first case was confirmed in Lagos State on 27 February 2020. This index case was a 44-
year-old man, an Italian citizen who returned from Milan, Italy, on 24 February and presented
at a health facility on 26 February 2020 (NCDC, 2020). According to (Ajisegiri, Odusanya &
Joshi, 2020), the country has continued to experience an increase in the number of cases, which
has spread across several states. While majority of the initial cases were imported, most of the
new cases have no travel history or contact with such people. This is highly suggestive of
ongoing community transmission.
Statement of problem
COVID-19 had created great impacts such as business and production disruptions, supply-
chain interruptions, volatility in the equity and debt markets, reduced revenue and cash flows
and other economic consequences also have accounting and financial implications. Other
factors include, but not limited to:
i. Reduced consumer demand for goods and services due to lost income and/or
restrictions on consumers’ ability to move freely;
ii. Disruption of global supply chains due to restrictions placed on the movement of people
and goods;
iii. Lack of investment in capital improvements and construction, reducing demand for
many goods and services; and
iv. Reduction in market prices for commodities and financial assets, including equity and
debt instruments.
The novel coronavirus (COVID-19) outbreak is a serious and unprecedented public health
threat. It has interrupted the movement of people and goods throughout the world, and many
levels of government are instituting restrictions on individuals and businesses. The resulting
impact on financial reporting may be significant for many of the business organisations and
industries.
Financial reporting considerations of the outbreak may be similarly broad for entities, and the
precise effects will depend on the facts and circumstances of each entity. As time elapses and
the effects of the outbreak change and evolve, it may become difficult to distinguish which
information and facts and circumstances need to be incorporated into the measurements as at
the end of the reporting period and which shall result in potential subsequent event disclosures
supported by several changes in estimates, assumptions and other analyses in a more
descriptive manner (ICAS, 2020).
Gap in knowledge
Although researchers had written on effect of the COVID-19 pandemic, but none can be seen
to the best knowledge of this research, in Nigeria except the contributions of fore running audit
51
Vol.9, No. 6, pp.50-63, 2021
firms like Price Water House & Coopers (PWC), KPMG, and Akintola Williams & Delloitte
(AWD). This paper therefore intends to provide guidance on the financial reporting considerations
against the backdrop of COVID 19 on accounting considerations.
Aims and objective of the study
The main aim of the study is to ascertain the effects of COVID-19 pandemic on accounting
and financial reporting in Nigeria. The specific objective are to:
1. Ascertain the differences between the published financial reporting before and during
COVID 19 era.
2. Determine how firms in Nigeria reported events after the reporting period during the
COVID 19 era as recommended by the Financial Reporting Council.
3. Ascertain the extent to which COVID 19 affects the going concern of firms in Nigeria.
4. Determine how COVID 19 affects the interim financial reporting affected.
5. Examines how firms in Nigeria reported changes in expected credit losses for financial
assets as stated in the guideline recommended by Financial Reporting Council during COVID
19 era.
Significance of the study

This study will guide the preparers of financial statements on the treatments of financial
transactions that occurred during the period of the COVID-19 pandemic, in order to avoid
management of earnings on the part of the management.
Research Questions
1. Are there any differences between the published financial reporting before and during
COVID 19 era?
2. Does firms in Nigeria reported events after the reporting period during the COVID 19
era as recommended by the Financial Reporting Council?
3. To what extent does COVID 19 affect the going concern of firms in Nigeria?
4. How COVID 19 does affects the interim financial reporting affected?
5. Does firms in Nigeria reported changes in expected credit losses for financial assets as
stated in the guideline recommended by Financial Reporting Council during COVID 19 era?
Statement of Research Hypotheses
H01: There is no significant difference between the published financial reporting before and
during COVID 19 era.
H02: COVID 19 has no significant effect on the events after the reporting period.
H03: COVID 19 has no significant effect on the going concern of firms in Nigeria
H04: COVID 19 has no significant effect on the interim financial reporting.
H05: COVID 19 has no significant effect on changes in expected credit losses for financial
assets.
52
Vol.9, No. 6, pp.50-63, 2021
LITERATURE REVIEW
General Review of Relevant Literature

In the study conducted by De Vito and Gómez (2020) on how the COVID-19 health crisis
could affect the liquidity risk of listed firms across 26 countries, it was found that the average
firm would exhaust its cash holdings in about two years and that its current liabilities would
increase beyond a sustainable level, such that an injection of about 53% of noncurrent debt
(relative to the 2018 level) would be needed to prevent a liquidity crunch. They also concluded
that about 1/10th of all firms would become illiquid within six months. Surakatu (2020) also
dealt on COVID-19: Financial reporting implications for companies in Nigeria and concluded
that COVID-19 related accounting impacts will vary based on companies’ business operations
and their industries.
In the study on COVID-19: A business impact series, the following key financial, tax and
regulatory considerations that should be top of mind for businesses at these disruptive times
were highlighted (KPMG, 2020). Furthermore, Theophilus, Ademola and Otitolaiye (2020)
found that COVID-19 had a significant effect on effective tertiary, accounting education and
the academic system and this can lead to dangerous social upheavals in the future, as youths’
dropouts of the education system, unable to engage in actively learning could cause uncertainty
about their future prospects. It also revealed that COVID-19 had significant effect on nations’
economies that could lead to global economic recession and that Sub-Sahara Africa may face
acute food scarcity, starvations, fiscal crisis at the federal and regional levels, and extraordinary
depletion of external reserves of countries in this region. They concluded that COVID-19 could
result in poor education funding and drop in the quality of accounting education in the region
and that there is urgent need for more investments in the online teaching facilities at this time,
to enhance students' and teachers’ capacity for learning and teaching. In the publication of
Financial Council of Nigeria, through the ICAN (2020), the council reiterated the need for
members to obtain adequate understanding of the impact of COVID-19 outbreak on the client’s
reporting framework and should also assess the implications of on client’s business operations
and the financial reporting processes. Aifuwa, Musa, & Aifuwa (2020), concluded that
coronavirus (COVID-19) pandemic harms firm performance in Nigeria, hence, recommended
that the government should include private’s business in its stimulus packages or palliatives
programmes to keep private businesses in operation after the pandemic.
THEORETICAL FRAMEWORK
Attribution Theory
This attribute theory, developed by Heider (1958), deals with how group of individuals and
group of communities interpret harmful events and how this relates to their thinking and
behaviour. He stated that people react quickly to events in an attempt to determine why nations
or groups of people do what they do. Heider further submitted that people can make two
attributions: internal attribution, the inference that a person is behaving in a certain way because
of something about the person such as attitude, character, or personality and external
attribution, the inference that a person is behaving a certain way because of something about
53
Vol.9, No. 6, pp.50-63, 2021
the situation they are in. Theophilus, Ademola and Otitolaiye (2020) argued that the relevance
of attribution theory arises from the fact that the interpretation and management of COVID-19
could differ among nations. While some nations have put some drastic measures to protect their
citizens, to a point of reopening schools after putting in place sophisticated control measures,
others are still confused and attributing the problems to the nation of China and Covid-19
pandemic, instead of finding a lasting solution, this is blaming others and avoiding
recrimination, this is rather a self-serving attribution.
Economic Power Theory

This theory developed by Salamon and Siegfried (1977), states that when countries that are
endowed with industrial and economic powers are affected by crisis, the effect is likely to
spread faster and at the same time affect the economies of the other countries. They stated
further that larger firms and lager nations take advantages of their economic and political power
to influence others, as they are capable of engaging in aggressive control drive-in all means
and can manipulate the political, economic, and industrial processes in their own interest. Rego
(2003) submitted that political and economies of scale can significantly affect a nations’ ability to
reduce their own burden for the interest of her citizens and any other nation that is economically loyal
to them. The theory is related to this study considering the economic influence, China is commanding
in the entire world. China directly or indirectly has an economic presence in virtually the entire world
that coronavirus the pandemic that started in a city in China spread to every country in the world.
Conceptual Model
Effect
Covid -19 Pandemic Accounting Information Effect Financial Reporting
Fig. 1 Conceptual Relationship

Source: Generated by the researcher
COVID-19 pandemic
The coronavirus disease (COVID-19) is caused by a new strain of coronavirus (SARS-CoV-2)
that has not been previously identified in humans. It was first reported to WHO on the 31st of
December, 2019 in Wuhan, China (NCDC, 2020).Several nations and states had to declare a
state of emergency due to its widespread impact. The disease has caused significant reduction
in social interaction, with shutdown of public facilities and limit on physical interaction (ICAN,
2020). The COVID-19 pandemic has created new challenges for most businesses globally at
unprecedented levels. From supply chain and production disruptions, workforce restrictions,
travel restrictions to reduced consumer spending among other factors, businesses have
experienced and are still experiencing negative impact of the pandemic which are being seen
in their financial performance, revenue projections and may ultimately be expected to result in
capital erosion (KPMG, 2020).
According to Rephann (2020), the pandemic has resulted in complex and unpredicted
consequences in the financial institutions, educational sector, tourism and hospitality,
industrial, manufacturing and transport, healthcare and pharmaceuticals, and local and
54
Vol.9, No. 6, pp.50-63, 2021
international trade. These have resulted in massive production shutdown and supply chain
disruptions due to the closures in china, causing global ripple effects across all economic
sectors in a rare twin supply-demand chain shock (Eric, 2020). Measures taken to contain the
virus have significantly affected economic activities and global markets, with some industries
more severely impacted than others. Amidst the global pandemic that has brought the whole
world to its knees and by extension affected the global markets on all fronts (ICAN, 2020).In
response to this pandemic, the federal and state governments as well as the Nigeria Centre for
Disease Control (NCDC) have implemented various measures to curb the spread of COVID-
19 in the country. The federal and state tax authorities have implemented measures to relieve
some of the burdens on taxpayers. Also, regulators such as the Central Bank of Nigeria (CBN)
have developed some policy measures such as the extension of moratorium and reduction in
interest rate on certain facilities amongst others to cushion the impact of the pandemic. The
Financial Reporting Council (FRC) of Nigeria has provided guidance to preparers of financial
statements on specific issues such as events after the reporting period, going concern, effects
on interim financial reporting, changes in expected credit losses for financial assets amongst
others (PwC, 2020).
Accounting information
Accounting information consists of both financial (quantitative) and non-financial information
(qualitative) used by decision makers. The accounting information systems are continually
evolving to meet the changing demands of their users. It is a transaction processing that
captured financial data that results from accounting transactions.
Accounting Information
Traditional Accounting Qualitative Information
Information Non-financial Information
Financial/Monetary Information
Nonmonetary Quantitative
Data
Financial Information Quantitative

Information
 Balance sheet Other Quantitative Information
 Income statement  Sales returns  Customer satisfaction
 Cost of goods  Percentage of defects  Employee satisfaction
manufactured  Number of customer complaints  Product or service
 Gross margin  Warranty claims quality
 Operating expenses  Units in inventory
 Budgeted hours
Fig. 2: A Contemporary View of Accounting Information
Source: Thomson LearningTM- Accounting information
55
Vol.9, No. 6, pp.50-63, 2021
The finance – accountant informational system facilitates the optimization of the effectiveness
and efficacy of the organization, thus securing a competitive advantage. The manager’s actions
are orientated in four distinct directions to achieve performance: profitability, competitiveness,
efficiency, and flexibility (Feies, Feies, Mates & Cotlet, 2013).
Accounting and financial reporting
These refers to the financial reporting implications of Covid-19 which will generally be
applicable to all organisations to varying degrees depending on the specific transactions
obtainable in each organisation. It assesses the following: its impact assessment on the system
and close-the-books procedures; defining mitigation plan, where impacts exist; reflect the
impact on the financial statements-in particular, whether uncertainties are factored into all the
necessary estimates and judgements; and provide disclosures to enable users of financial
statements understand the overall impact of the Covid-19 outbreak on the financial position
and financial performance of the entity (Surakatu, 2020).
METHODOLOGY
Research Design
The study employs cross-sectional approach where data was collected at a particular point in
time from different companies. This kind of research design is pre-planned and structured, and
typically useful when considering more than two (2) different companies (Churchill &
Iacobucci, 2004). Cross-sectional research design describes specific characteristics of the study
variables, and generates data that allows for relationships or associations between two variables
(Sekaran, 2000). Considering the nature of the study objectives, a cross sectional research
design is found suitable to gather quantitative data, make statistical predictions and correlations
of factors associated with accounting financial, financial information and COVID 19.
Data Type
Secondary financial data was collected from multiple sample sources to ensure a fair
representation, namely: The Manufacturing sector, financial sectors and conglomerates of the
Nigerian economy. In order to ensure that a manageable sample size is attained, three (3) top
performing firms were selected among these companies (as listed on the Nigerian Stock
Exchange). The sample period was for the financial year ended 31st December, 2020 which
was compared with the 2019 financial reporting. Due to the very small number of observations
and the narrow lockdown days during the COVID-19 pandemic. Both descriptive inferential
analyses were used to analyse the effects of COVID 19 on accounting and financial reporting
issues in Nigeria.
Method of Data Analysis

Independent t-test was carried out to ascertain the difference between accounting and financial
reporting before and during the COVID 19 pandemic. Also, Logit Binary Regression Model
was employed to determine the effect of COVID 19 on accounting and financial reporting using
SPSS version 25.
56
Vol.9, No. 6, pp.50-63, 2021
Model Specification
Independent t-test
Formula:
Group 1 = accounting and financial reporting before COVID 19 era (2019)

Group 2 = accounting and financial reporting during COVID 19 era (2020).
Logit Binary Regression Model
Formula for Logit Binary regression model:
𝑃𝑖
𝐿 = 𝑙𝑛 [ ] = 𝛽0 𝑋𝑖
1 − 𝑃𝑖
Where:
L = Logit Regression
ln = Log
Pi = proper reporting of events after the reporting period, going concern, Interim financial
reporting, and changes in expected credit losses for financial assets.
1 – Pi = inappropriate reporting of events after the reporting period, going concern, Interim
financial reporting, and changes in expected credit losses for financial assets.
β = Beta
X = COVID 19.
Variables in the Study

Independent Variable
COVID 19: this is measured in two (2) different ways: Before COVID 19 era is ranked “0”;
During COVID 19 era is ranked “1”. The reported number of cases of COVID 19 was also
used as a variable to measure COVID 19.
Dependent Variable
Events after the reporting period: If reported appropriately as spelt out by the FRC guideline, it
is ranked “1”, otherwise, it is ranked “0”.
Going concern: If reported appropriately as spelt out by the FRC guideline, it is ranked “1”,
otherwise, it is ranked “0”.
Interim financial reporting: If reported appropriately as spelt out by the FRC guideline, it is
ranked “1”, otherwise, it is ranked “0”.
Changes in expected credit losses for financial assets: If reported appropriately as spelt out by
the FRC guideline, it is ranked “1”, otherwise, it is ranked “0”.
57
Vol.9, No. 6, pp.50-63, 2021
Data Analysis
H01: There is no significant difference between the published financial reporting before and
Group Statistics
Covid - 19 N Mean Std. Deviation Std. Error Mean
Events after the reporting period Covid Era 9 .1111 .33333 .11111
Not Covid Era 9 .5556 .52705 .17568
Going concern Covid Era 9 .2222 .44096 .14699
Not Covid Era 9 .6667 .50000 .16667
Interim financial reporting Covid Era 9 .4444 .52705 .17568
Not Covid Era 9 .8889 .33333 .11111
Changes in expected credit losses Covid Era 9 .3333 .50000 .16667
Not Covid Era 9 .8889 .33333 .11111
The Independent t-test compares the means of two independent groups in order to determine
whether there is statistical evidence that the variable means (published financial reporting
before and during COVID 19 era) are significantly different.
The group statistics table shows the group statistics and revealed that the mean value of
published financial reporting before COVID 19 era was 0.5556 while the mean value published
financial reporting during COVID 19 era was 0.1111. There is a clear difference in the mean
value of the mean value of published financial reporting before and during COVID 19 era in
the area of reporting events after reporting period, going concern, interim financial reporting,
and changes in expected credit losses.
Independent Samples Test

Levene's Test
for Equality of
Variances t-test for Equality of Means
95% Confidence Interval
Sig. (2- Mean Std. Error of the Difference
F Sig. t df tailed) Difference Difference Lower Upper
Events afterEqual variances
11.184 .004 -2.138 16 .048 -.44444 .20787 -.88511 -.00378
the reportingassumed
period Equal variances
-2.138 13.517 .051 -.44444 .20787 -.89178 .00289
not assumed
Going Equal variances
10.000 .007 -2.000 16 .063 -.44444 .22222 -.91553 .02665
concern assumed
Equal variances
-2.000 12.754 .063 -.44444 .22222 -.91613 .02724
not assumed
Interim Equal variances
11.184 .004 -2.138 16 .048 -.44444 .20787 -.88511 -.00378
financial assumed
reporting Equal variances
-2.138 13.517 .051 -.44444 .20787 -.89178 .00289
not assumed
Changes inEqual variances
5.776 .029 -2.774 16 .014 -.55556 .20031 -.98019 -.13092
expected assumed
credit losses Equal variances
-2.774 13.938 .015 -.55556 .20031 -.98535 -.12576
not assumed
58
Vol.9, No. 6, pp.50-63, 2021
The output in the Independent Test table includes two rows: Equal variances assumed and
Equal variances not assumed. If Levene’s test indicates that the variances are equal across the
two groups (i.e., p-value large), we will rely on the first row of output, Equal variances
assumed, otherwise, we assume no equal variance. From Independent Test table, the p (sig.)
value is .004, .007, .004, and .029 which is lower than 0.05 respectively, this hereby assumes
a significant difference between the published financial reporting before and during COVID
19 era in the area of reporting events after reporting period, going concern, interim financial
reporting, and changes in expected credit losses.
Since the p value is less than 0.05 (004, .007, .004, and .029 < 0.05), the researcher hereby
rejects the null hypothesis and conclude that there is significant difference between published
financial reporting before and during COVID 19 era in the area of reporting events after
reporting period, going concern, interim financial reporting, and changes in expected credit
losses.
Hypothesis Two
H02: COVID 19 has no significant effect on the events after the reporting period.
Model Summary
Cox & Snell R Nagelkerke R
Step -2 Log likelihood Square Square
1 18.644a .211 .293
a. Estimation terminated at iteration number 5 because
parameter estimates changed by less than .001.
Variables in the Equation

B S.E. Wald df Sig. Exp(B)
Step 1a Covid19 -2.303 1.255 3.366 1 .006 .100
Constant 1.223 .671 1.111 1 .009 1.250
a. Variable(s) entered on step 1: Covid19.
The model summary table for hypothesis two shows that there is about 21% correlation
between COVID 19 pandemic and Events after the reporting period. This implies that COVID
19 pandemic has about 21% chances in events after the reporting period. This is also confirmed
by the Nagelkerke R Square value of 29%. The model summary table for hypothesis two
revealed that Covid 19 has negative significant effect on reporting events after the reporting
date. Consequently, the Beta value of -2.303 (as shown in the variables in the equation table
for hypothesis two) simply mean that Covid 19 account for a unit effect of -2.303. The p-value
(.006) is less than the significant level of 0.05, therefore, Covid 19 has negative significant
effect on the Events after the reporting period.
59
Vol.9, No. 6, pp.50-63, 2021
Hypothesis Three
H03: COVID 19 has no significant effect on the going concern of firms in Nigeria
Model Summary
1 20.992a .188 .251

Step 1a Covid19 -1.946 1.069 3.313 1 .009 .143
Constant .693 .707 .961 1 .027 2.000
The model summary table for hypothesis three shows that there is about 19% correlation
between COVID 19 pandemic and going concern. This implies that COVID 19 pandemic has
about 19% chances in going concern. This is also confirmed by the Nagelkerke R Square value
of 25%.
The model summary table for hypothesis three revealed that Covid 19 has negative significant
effect on reporting going concern. Consequently, the Beta value of -1.946 (as shown in the
variables in the equation table for hypothesis three) simply mean that Covid 19 account for a
unit effect of -1.946. The p-value (.009) is less than the significant level of 0.05, therefore,
Covid 19 has negative significant effect on the going concern of firms in Nigeria.
Hypothesis Four
H04: COVID 19 has no significant effect on the interim financial reporting.
Model Summary
1 18.644a .211 .293

Step 1a Covid19 -2.303 1.255 3.366 1 .067 .100
Constant 2.079 1.061 3.844 1 .050 8.000
The model summary table for hypothesis four shows that there is about 21% correlation
between COVID 19 pandemic and the interim financial reporting. This implies that COVID 19
pandemic has about 19% chances in going concern. This is also confirmed by the Nagelkerke
R Square value of 29%.
The model summary table for hypothesis four revealed that Covid 19 has negative significant
effect on the interim financial reporting. Consequently, the Beta value of -2.303 (as shown in
the variables in the equation table for hypothesis four) simply mean that Covid 19 account for
60
Vol.9, No. 6, pp.50-63, 2021
a unit effect of -2.303. The p-value (.009) is less than the significant level of 0.05, therefore,
Covid 19 has negative significant effect on the interim financial reporting of firms in Nigeria.
Hypothesis Five
H05: COVID 19 has no significant effect on changes in expected credit losses for financial
assets.
Model Summary
1 17.736a .296 .402

Step 1a Covid19 -2.773 1.275 4.731 1 .030 .063
Constant 2.079 1.061 3.844 1 .050 8.000
The model summary table for hypothesis five shows that there is about 30% correlation
between COVID 19 pandemic and changes in expected credit losses for financial assets. This
implies that COVID 19 pandemic has about 30% chances in expected credit losses for financial
assets. This is also confirmed by the Nagelkerke R Square value of 40%.
The model summary table for hypothesis five revealed that Covid 19 has negative significant
effect on the changes in expected credit losses for financial assets. Consequently, the Beta value
of -2.773 (as shown in the variables in the equation table for hypothesis five) simply mean that
Covid 19 account for a unit effect of -2.773. The p-value (.030) is less than the significant level
of 0.05, therefore, Covid 19 has negative significant effect on the changes in expected credit
losses for financial assets.
Summary of Findings
This paper revealed that:
1. There is significant difference between the published financial reporting before and
2. COVID 19 has significant effect on the events after the reporting period.
3. COVID 19 has significant effect on the going concern of firms in Nigeria
4. COVID 19 has significant effect on the interim financial reporting.
5. COVID 19 has significant effect on changes in expected credit losses for financial
assets.
CONCLUSION
The interest of this paper is to access the effects of COVID-19 pandemic on the accounting and
financial reporting in Nigeria business environment. Meanwhile, COVID-19 pandemic had
61
Vol.9, No. 6, pp.50-63, 2021
created great impacts on businesses which has caused economic consequences, having both
accounting and financial implications. By testing to ascertain the difference between
accounting and financial reporting, before and during the Covid-19 pandemic periods, the study
established that there is significant difference between published financial reporting, before
and during Covid-19 era; with a significant effect on events after the reporting period, going
concern of firms in Nigeria, interim financial reporting and changes in expected credit losses
for financial assets.
The paper further discovered that professional accountancy and regulatory bodies are
monitoring the issues and situations, as events unfold, which might have effect on accounting
and financial reporting due to the impact of COVID-19 pandemic. They continually issuing
out guidelines to professional accountants in order to assist them in providing technically sound
and quality service during this pandemic period.
Professional accountants, both in public and private practice, are expected to display
professional scepticism and judgement, treating issues in public interest and ethical
responsibilities expected of them.
Recommendations
Future research into the impact of Covid-19 pandemic on businesses should focus on
establishing a clearer picture of how Covid-19 pandemic impact businesses’ financial reporting
after Covid-19 pandemic period. Further research needs to be carried out in order to assess the
consequences of Covid-19 pandemic on financial reporting of businesses, during and after the
Covid-19 pandemic era.
References
Aifuwa, H.O., Musa, S. & Aifuwa, S.A. (2020). Coronavirus pandemic outbreak and firms’
performance in Nigeria. Management and Human Resource Research Journal, 9(4),
15 – 25.
Ajisegiri, W. S, Odusanya, O. O & Joshi R. (2020). COVID-19 outbreak situation in Nigeria
and the need for effective engagement of community health workers for epidemic
response, Global Biosecurity, 1(4), 1 – 10.
BDO (2020). Potential effects of the coronavirus outbreak on 2020 reporting periods and
onward. International Financial Reporting Bulletin, 3.
De Vito, A., & Gómez, J. (2020). Estimating the COVID-19 cash crunch: Global evidence and
policy. J. Account. Public Policy, 39, 1 – 14.
Eric, H. (2020). How is COVID-19 changing prospective students’ plans? Here’s an early
look. The Chronicle of Higher Education, 2(5).
Feies, G.C. , Feies, C., Mates, D., & Cotlet, D. (2013). The role of accounting information
within the management process of public utilities services. 2nd World Conference on
Educational Technology Researches – WCETR2012, Procedia - Social and Behavioral
Sciences, 83, 711 – 716.
62
Vol.9, No. 6, pp.50-63, 2021
Financial Reporting Council of Nigeria (2020). COVID-19 and its impact on audit reporting
entities in Nigeria- Guidance for external auditors and matters to consider during
COVID-19 period. The Institute of Chartered Accountants of Nigeria.
Heider, F. (1958). The psychology of interpersonal relations, 1st ed., New York: Wiley.
ICAN (2020). Covid -19 practice alert: Key accounting, tax and auditing considerations.
Downloaded on 14/01/2021 from www.icanig.org: covid-19-resources.
CAS (2020). Guidance notes on COVI-19 pandemic: Implications on financial reporting.
Retrieved from https://esafa.org/wp-content/uploads/2020/09/Guidance-Notes-
COVID-19-Pandemic-Implications-on-Financial-Reporting-11th-May-2020.pdf on
14/01/2021.
KPMG Professional Services (2020). COVID-19: A business impact series- Financial, tax and
regulatory considerations to manage COVID-19 disruptions. Coronavirus (COVID-19)
TaxDevelopments, 2 of April, 2020.
Marbot O. (2020). Coronavirus Africa Map: Which Countries are Most at Risk?
https://www.theafricareport.com/23948/coronavirus-africa-which-countriesare-most-
at-risk/
Nigeria Centre for Disease Control (NCDC) (2020). First Case of Corona virus Disease
Confirmed in Nigeria [Internet]. Available from: https://ncdc.gov.ng/news/227/first-
case of-corona-virus-disease-confirmed-in-Nigeria.
PricewaterhouseCoopers Limited (2020). Covid 19-key-financial-reporting implication-
nigeria.pdf. Downloaded on 2/02/2021 from www.pwc.com-assets-pdf-Covid 19-key-
financial-reporting implication-nigeria.
Rego, S. O. (2003). Tax avoidance activities of US multinational corporations. Contemporary
Accounting Research, 20(4), 805-833.
Rephann, T. (2020). Covid-19: Economic and tax revenue impact: Estimates for the
commonwealth of Virginia and localities. Center for Economic and Policy, 1(1), 1-26.
Salamon, L. M., & Siegfried, J. J. (1977). Economic power and political influence:
The impact of industry structure on public policy. American Political Science Review,
7(3), 1026-1043.
Surakatu, L. (2020). COVID-19: Financial reporting implications for companies in Nigeria.
Business Day, Tuesday 02/07/2020
Theophilus, A. A., Ademola, A. & Otitolaiye, E. D. (2020). Covid-19 and accounting education
in Sub-sahara Africa. European Journal of Business, Economics and Accountancy,
8(3), 1 – 13.
63

Effects of COVID 19 Pandemic On Accounting and Financial Reporting in Nigeria

Uploaded by

Copyright:

Available Formats

Effects of COVID 19 Pandemic On Accounting and Financial Reporting in Nigeria

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Effects of COVID 19 Pandemic On Accounting and Financial Reporting in Nigeria

Uploaded by

Copyright:

Available Formats

European Journal of Accounting, Auditing and Finance Research

Vol.9, No. 6, pp.50-63, 2021

Raimi Adekunle ANISERE-HAMEED

KEYWORDS: accounting, COVID-19, financial reporting, pandemic

Significance of the study

General Review of Relevant Literature

Economic Power Theory

Fig. 1 Conceptual Relationship

Financial Information Quantitative

Method of Data Analysis

Group 1 = accounting and financial reporting before COVID 19 era (2019)

Variables in the Study

Independent Samples Test

Variables in the Equation

Variables in the Equation

Variables in the Equation

Variables in the Equation

You might also like