Implementation Of The International Financial Reporting Standards

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Tables 3.1 and 3.2 above exhibit the various local content sustainability indicators and their reporting procedures. Although the GRI is the most commonly used guideline, the two standards are often used together in a single sustainability report by oil companies . The present study combines these indicators and adopted a content analysis procedure to test whether there is any variation in the IOCs’ local content reporting before and after the enactment of the Nigeria’s local content law. The next section considers other voluntary local content reporting provisions. 3.12 The International Accounting and Reporting Issues & the Guidance on Corporate Responsibility Indicators in Annual Reports Based on the review of the practical…show more content…
In addition, the nature of the locally-sourced items and the list of local suppliers may also be attached to the additional information (International Accounting and Reporting Issues, 2007: 81). Oil companies may categorise their purchases into ‘foreign’ and ‘local’ and report that in the value-added statement (Forte Oil PLC Annual Reports, 2010). The guidelines recommended that companies should also disclose their local employment and workforce development based on full-time, part-time, contract, gender or salaries and wages categories. Import and export values should also be reported in order to “calculate the contribution of the reporting company to the host country 's balance of payments” (International Accounting and Reporting Issues, 2007: 79). This supports the balance of payment argument of local content (see section 2.7.3). A survey conducted on these indicators found that local purchasing was adequately disclosed by only 10 out of the 100 sampled enterprises with the import-export values reported by only 13 companies (International Accounting and Reporting Issues, 2008, 2009). 3.13 The Extractive Industries Transparency Initiative (EITI) and Local Content The EITI emphasises a wider accounting, disclosure and transparency of local content expenditure. EITI had suggested that due to the huge amount of money oil companies spend on their suppliers
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