The Impact of Return on Asset, Current Ratio and Total Assets on Level of compliance with International Accounting Standard 2 by Quoted Food and Beverages Companies in Nigeria

Abstract

The main objective of this paper is to determine the relationship between Return on asset, Current ratio and Total asset with compliance. The study made use of secondary data obtained from the audited financial reports of fifteen sampled companies which was judgmentally   selected for the period of 2012-2016. Descriptive statistics was used to present the data and multiple regression analysis with the aid of SPSS version 22 was used to determine the relationship between Return on asset, Current ratio and Total asset with compliance. The regression analysis revealed that ROA, CR, TA are positively related with compliance. Based on the findings, the study recommends that the Financial Reporting Unit who is in charge with the responsibility of ensuring compliance should publish the compliance status of all the registered company in Nigeria annually, for the familiarity of every requirement by various users of financial statement as this will enhance the level of compliance by companies.