2.1       Introduction
            The acquisition of non-performing loans (NPL) by AMCON and injection of equity into the rescued banks in order to bring their net Asset value back up to Zero is an indication that the banking Industry is not yet stable.

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            However, the adoption of International financial reporting standards is a measure to achieving the harmonization of accounting polices so that comparison of financial information will be easier and more meaningful across jurisdictions Sanusi (2011).
            This chapter focuses on the conceptual, empirical and theoretical literatures regarding International financial reporting standards and its implications on the code of corporate governance practices in Nigeria banks.
            A lot of work have been documented by scholars and intellectuals in the area of study, but the review was selected based  on information form articles from learned journals, seminar papers, reports, magazines, newspapers and other relevant materials.  

The issue reviewed include:
Corporate governance in the Nigeria financial sector, Implications of IFRS adoption on corporate governance practices, IFRS adoption, Implications on management accounting and Taxation, and Impact of the Implementation of IFRS on key financial measures of UK firms and volatility effect.

2.2       Concept of Corporate Governance
            For Sulaiman (2003), corporate governance is the frame work for accountable decision making as well as the structures that turn decision into actions in organization. He further added that, it is a combination of processes structures and relationships through which business corporations are directed and controlled.
            Oyediran (2003) posits that, corporate governance is the way and manner in which the affairs of companies are conducted by those charged with that duty.
            The governance of limited liability companies in Nigeria is the responsibility of the Board of directors who oversees the activities of the Executives.
            Dozie (2003) observes that corporate governance is characterized by transparency, accountability, probity and the protections of stakeholder’s right. He further posits that corporate governance refers to the manner in which the power of a corporations is exercised in the management of it’s total portfolio of economic and socio resource with the aim of increasing shareholders value and safeguarding the interests of other stakeholders in the context of its corporate mission. From the above definitions, the concept of corporate governance implies rules and regulations which ensure that a company is managed in a transparent and accountable way so as to ensure the survival of the enterprise.
            Generally, the objective of corporate governance is to strengthen the confidence of the investors in the business.
2.3       Academic Review
            Adeyemi and Adesoji (2011) carried out a study on the efficacy of internal and external audit in corporate governance in Nigeria financial sector. The reported that weak internal controls were evident in the sector due to the overbearing influence of the chairman, particularly in family controlled firms and the existence of a rubber stamp board. The researchers used secondary data and simple statistics to express the quantitative aspect of the data.
            At the foreign scene Joana and Ivy (2011) conducted a study on Accounting evidence from relative performance evolution around IFRS adoption. They reported that, with greater globalization and accounting convergence, firms likely increasingly turn to foreign peers as benchmark for managers. According to them, changes in ownership composition can influence corporate governance practices. Although, there was no systematic evidence to support this. Their study was specific to continental European firms and may not be generalizable to other setting.
            Folajimi (2011) equally carried out a study on IFRS adoption: Implications on management Accounting and Taxation in Nigeria Economy. He reported that Implementation of IFRS will ensure segment reporting of management accounts for inflow of direct investment, it will give room for good corporate governance for transparent reporting of financial statements. According to him, the global reporting Language will ensure that investor’s fund are moved easily within the global market. He used chi-square statistical method to analyze the result of the survey.
George (2010) conducted study on IFRS adoption and financial statements effects, the case of UK firms. He reported that IFRS implementation has favourably affected the overall financial performance and position of firms. The study compares the financial numbers reported under UK GAAP in the pre-official adoption period, is 2004 with the IFRS re-stated numbers reported in 2004. The logistic regression that is employed uses dummy variable as the dependent variable which is dichotomous and takes two values, ie 1 for firms reporting IFRS re-stated financial numbers in 2004 and O for firms reporting their accounting figures under UK GAAP in 2004. He used a multiple regression model in his analysis.
2.4       Theoretical Framework
The theoretical framework guiding this study is Institutional Theory (IT).
            Institutional theory is defined as a way or thought or action of some prevalence or performance which is embedded in the habits of a group or the customs of a people Burns x Scapens (2006). In the light of above definition, the researchers drew an understanding of accounting processes as being rule-based or based on how things should be done, and routine based highlighting how things are actually done. He further explained that, routinization involves the concept of the formulation of rules to mutually acceptable ways of compliance ending with routines.
            However, despite the fact that IFRS changes are principle based, set of accounting standards, their implementation into the working process of a company can be argued to be subject to a process of institutionalization. This implies that institutional theory is used as a means of describing the processes/phases which countries must follow, in order to fully adopt IFRS as a global reporting standard. The existing routines and institutions shape the selection and implementation process of the new IFRS standard change Tiina Tamena p99 (2011).

2.5       Link Between IFRS and Corporate Governance
            Watt (1986) observed that the adoption of IFRS may have some direct impact on corporate sector. He maintained that agency shareholders can be substantially reduced through implementation of IFRS as increased transparency cause managers to act more in the interest of the shareholder.
            In the light of the above, it can be established that there is a nexus between IFRS and corporate governance in Nigerian Financial sector. Both IFRS and Corporate governance code provide-transparent information that not only inspire the confidence of investors but also enables shareholders to judge whether or not their interests are served.

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