INFORMATION DISCLOSURE AND ITS INFLUENCE ON GOODWILL IMPAIRMENT DECISIONS IN BANK MERGERS AND ACQUISITIONS IN NIGERIA

The need for quality accounting information is to bring investors in an economy. Investors require financial position of business asset to be prepared in line with the international accounting standards. Investment decision really on the quality of information received on the business. Assets and liabilities porting is part of good accounting reporting. Therefore, Goodwill as an asset requires quality reporting in accordance to the Nigerian GAAP. Recognition of Goodwill in accounting reporting has been a major challenging issue even though its recognition has been provided in the accounting regulations. Provision of goodwill impairment in Nigerian banks has been provided on SAS26 for Financial information. Weakness of the NGAAP as identified by World Bank in 2009 has raised many questions on the quality of accounting information in Nigeria. The 2008/2009 financial crisis in the Nigeria has call for the review of NGAAP to adopt IFRS in line with global standards. Questionnaires were administered to the bank staff and preparers of financial statements for banks. 10 banks were selected for the study. Chi-square was used as a statistical tool from the data analysis. Form the study it was found that financial reporting in Nigerian universal banks recognized goodwill impairment in a low term for merger and acquisitions. The quality of accounting information disclosure in respect of goodwill has been low. Nigerian universal banks should ensure there is enough information in respect of goodwill impairment before taking merger and acquisition decision as this will foster quality decision. Also Nigerian universal banks should providing adequate and accurate information in foot notes of financial statement in respect of goodwill impairment