Effects of IFRS adoption on the financial statements of Nigerian listed entities: the case of oil and gas companies

On 28 July 2010, the Nigerian Federal Executive Council approved January 1, 2012 as the effective date for the convergence of Nigerian Statement of Accounting Standards (SAS) or Nigerian GAAP (NG-GAAP) with International Financial Reporting Standards (IFRS). By this pronouncement, all publicly listed companies and significant public interest entities in Nigeria were statutorily required to issue IFRS based financial statements for the year ended December, 2012. This study investigates the impact of the adoption of IFRS on the financial statements of Nigerian listed Oil and Gas entities using six years of data which covers three years before and three years after IFRS adoption in Nigeria and other African countries. First, the study evaluates the impact of IFRS adoption on the Exploration and Evaluation (E&E) expenditures of listed Oil and Gas companies. Second, it examines the impact of IFRS adoption on the provision for decommissioning of Oil and Gas installations and environmental rehabilitation expenditures. Third, the study analyses the impact of the adoption of IFRS on the average daily Crude Oil production cost per Barrel. Fourth, it examines the extent to which the adoption and implementation of IFRS affects the Key Performance Indicators (KPIs) of listed Oil and Gas companies. The study further explores the impact of IFRS adoption on the contractual relationships between Nigerian Government and Oil and Gas companies in terms of Joint Ventures (JVs) and Production Sharing Contracts (PSCs) as it relates to taxes, royalties, bonuses and Profit Oil Split. A Paired Samples t-test, Wilcoxon Signed Rank test and Gray’s (Gray, 1980) Index of Conservatism analyses were conducted simultaneously where the accounting numbers, financial ratios and industry specific performance measures of GAAP and IFRS were computed and analysed and the significance of the differences of the mean, median and Conservatism Index values were compared before and after IFRS adoption. Questionnaires were then administered to the key stakeholders in the adoption and implementation of IFRS and the responses collated and analysed. The results of the analyses reveal that most of the accounting numbers, financial ratios and industry specific performance measures examined changed significantly as a result of the transition from GAAP to IFRS. The E&E expenditures and the mean cost of Crude Oil production per barrel of Oil and Gas companies increased significantly. The GAAP values of inventories, GPM, ROA, Equity and TA were also significantly different from the IFRS values. However, the differences in the provision for decommissioning expenditures were not statistically significant. Gray’s (Gray, 1980) Conservatism Index shows that Oil and Gas companies were more conservative under GAAP when compared to the IFRS regime. The Questionnaire analyses reveal that IFRS based financial statements are of higher quality, easier to prepare and present to management and easier to compare among competitors across the Oil and Gas sector but slightly more difficult to audit compared to GAAP based financial statements. To my knowledge, this is the first empirical research to investigate the impact of IFRS adoption on the financial statements of listed Oil and Gas companies. The study will therefore make an enormous contribution to academic literature and body of knowledge and void the existing knowledge gap regarding the impact and implications of IFRS adoption on the financial statements of Oil and Gas companies.

Efficacy of a four-week uphill sprint training intervention in field hockey players

Current evidence increasingly suggests that very short, supra-maximal bouts of exercise can have significant health and performance benefits. The majority of research conducted in the area however, uses laboratory-based protocols, which can lack ecological validity. The purpose of this study was to examine the effects of a high intensity sprint-training programme on hockey related performance measures. 14 semi-professional hockey players completed either a 4-week high intensity training (HIT) intervention, consisting of a total of six sessions HIT, which progressively increased in volume (n=7), or followed their normal training programme (Con; n=7). Straight-line sprint speed with and without a hockey stick and ball, and slalom sprint speed, with and without a hockey stick and ball were used as performance indicators. Maximal sprint speed over 22.9m was also assessed. Upon completion of the four-week intervention, straight-line sprint speed improved significantly in the HIT group (~3%), with no change in performance for the Con group. Slalom sprint speed, both with and without a hockey ball was not significantly different following the training programme in either group. Maximal sprint speed improved significantly (12.1%) in the HIT group, but there was no significant performance change in the Con group. The findings of this study indicate that a short period of HIT can significantly improve hockey related performance measures, and could be beneficial to athletes and coaches in field settings.

Agency and animation: the performance of interactive game characters

As an animator and practice-based researcher with a background in games development, I am interested in technological change in the video game medium, with a focus on the tools and technologies that drive game character animation and interactive story. In particular, I am concerned with the issue of ‘user agency’, or the ability of the end user to affect story development—a key quality of the gaming experience and essential to the aesthetics of gaming, which is defined in large measure by its interactive elements. In this paper I consider the unique qualities of the video game1 as an artistic medium and the impact that these qualities have on the production of animated virtual character performances. I discuss the somewhat oppositional nature of animated character performances found in games from recent years, which range from inactive to active—in other words, low to high agency. Where procedural techniques (based on coded rules of movement) are used to model dynamic character performances, the user has the ability to interactively affect characters in real-time within the larger sphere of the game. This game play creates a high degree of user agency. However, it lacks the aesthetic nuances of the more crafted sections of games: the short cut-scenes, or narrative interludes where entire acted performances are mapped onto game characters (often via performance capture)2 and constructed into relatively cinematic representations. While visually spectacular, cut-scenes involve minimal interactivity, so user agency is low. Contemporary games typically float between these two distinct methods of animation, from a focus on user agency and dynamically responsive animation to a focus on animated character performance in sections where the user is a passive participant. We tend to think of the majority of action in games as taking place via playable figures: an avatar or central character that represents a player. However, there is another realm of characters that also partake in actions ranging from significant to incidental: non-playable characters, or NPCs, which populate action sequences where game play takes place as well as cut scenes that unfold without much or any interaction on the part of the player. NPCs are the equivalent to supporting roles, bit characters, or extras in the world of cinema. Minor NPCs may simply be background characters or enemies to defeat, but many NPCs are crucial to the overall game story. It is my argument that, thus far, no game has successfully utilized the full potential of these characters to contribute toward development of interactive, high performance action. In particular, a type of NPC that I have identified as ‘pivotal’3—those constituting the supporting cast of a video game—are essential to the telling of a game story, particularly in genres that focus on story and characters: adventure games, action games, and role-playing games. A game story can be defined as the entirety of the narrative, told through non-interactive cut-scenes as well a interactive sections of play, and development of more complex stories in games clearly impacts the animation of NPCs. I argue that NPCs in games must be capable of acting with emotion throughout a game—in the cutscenes, which are tightly controlled, but also in sections of game play, where player agency can potentially alter the story in real-time. When the animated performance of NPCs and user agency are not continuous throughout the game, the implication is that game stories may be primarily told through short movies within games, making it more difficult to define video games animation as a distinct artistic medium.