PA Donwa (Ph.D), CO Mgbame (Ph.D), OA Utomwen (Ms.C)
Nigeria, like the rest of the world has need to evaluate and effect accounting reporting for raw materials, energy consumption and use of natural resources which have systematically depleted the environment. Besides, the nations’ need to protect the environment, have made for global regulations and environmental laws which however require only voluntary disclosure of data and information in annual financial reporting of industrial emissions, degradations and all activities which impact negatively on the environment. rnThe objective of this conceptual paper focuses on the environmental, economic and social menace of gas flaring factors in Nigeria, and the environmental and financial issues in the operation of oil and gas industry and the environmental accounting and environmental disclosure on oil and gas accounting and the impact of IFRS adoption in Nigeria.rnThe study revealed the negative impacts of gas flaring on the environment and the economy is unfavorable. Consequently, the study advocated for a change in strategies currently use in the oil and gas industry.rnAdditionally, in Nigeria the information disclosure requirements in the financial statements under NG-GAAP were grossly inadequate to effectively bridge the information asymmetry between companies and the users of the financial statements. However, reporting under the IFRS regime requires companies especially in the Oil and Gas sector to make more disclosures regarding their reserves, discoveries and other key variables necessary for investment decision and to meet objective of financial statements, which is to show a true and fair view of the activities of a company. It is therefore envisaged that the companies will disclose more of their financial information with the transition from the NG-GAAP to IFRS.