transparency and quality of financial reporting, the key element of good governance. The costs of these reforms are very clear to them, as they are the ones who will have to assume those costs, but they are still unclear about the actual effects of these purported “best practices,” which are aimed at improving the. Many managers question whether the current reform efforts in the field of corporate governance are adequate. Governance and the Quality of Financial Reporting Currently there are two approaches being advocated, the ‘enlightened shareholder value approach’, in which management run the company with the exclusive objective of maximizing shareholder value, and the ‘pluralist approach’, in which a wider range of interests is valid and has to be balanced. One way is to ensure that company’s reports actually reflect good governance. Openness and transparency in annual reporting on an unprecedented scale may be inevitable with the adoption of International Financial Reporting Standards (IFRS) and Nigeria’s commitment to adopt IFRS Nigerian companies will have no alternative but to bring themselves up to speed. A variety of new information types are been demanded, in particular forward-looking, non-financial and soft information. Significant changes in the corporate external reporting environment have led to proposals for fundamental changes in corporate reporting practices.
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Good reports show initiative and effort on the part of the preparers. Good corporate reporting is generally an indication of competitiveness and superior corporate governance.