Tansian University Journal of Arts, Management & Social Sciences

The study examined impact of IFRS on inventory valuation of firms in Nigeria. The study specifically ascertained the impact of FIFO method on inventory of firms in Nigeria, the effect of weighted average method on inventory of firms in Nigeria and also evaluated the effect of standard cost method of inventory values of firms in Nigeria. This research work adopted ex-post facto research design. The study made use of secondary data from annual financial statements covering 2011-2020 of the selected Brewing firms in Nigeria. The study use a multiple regressions method to analyze and test the hypotheses raised. Result of analysis shows that FIFO method of inventory has significant effect on inventory value of firms in Nigeria. It was also observed that Weighted Average of valuation has positive and significant impact on inventory values of firms in Nigeria. The study further revealed that standard cost method of inventory has positive and significant impact on inventory values of firms in Nigeria. The implication of the findings of this work is that the FIFO method of valuation gives accurate measure of stock record and therefore measures the closing stock value and other stock value right and gives proper measurement of performance of the business especially in profit and loss calculation. The study recommends that all corporate firms should adopt the IFRS in their firms for better reporting of information.

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