Impact Of The Adoption Of Ifrs On Value Relevance And Accounting Information In The Insurance Sector

CHAPTER ONEINTRODUCTION1.1Background to the StudyAccounting provides a vital service to broad and diverse users. Investors use financial accounting information for investment decisions, governments agencies need it particularly for tax purposes while regulatory agencies use it to determine whether existing statutory pronouncement are complied with, among others (Kajola and Adedeji, 1999). According to Mayer (2007:2) “Accounting plays a significant role within the concept of generating and communicating wealth of companies. Nevertheless, in the wake of the recent scandals and economic meltdown …