The Impact of International Financial Reporting Stanadard (IFRS) Adoption on Accounting Quality in Nigerian Listed Money Deposit Banks

Abstract

This study was aimed to empirically evaluate the impact of adoption of IFRS on accounting quality in Nigeria using the money deposit banks. The study utilized the annual reports and accounts of 15 banks listed in the Nigerian Stock Exchange for the period of 2011 to 2014 (that is two years before and two years after adoption); using liner regression analysis was employed in analyzing the data generated for the study. Based on the data analyses, the study found that large loss recognitions have increased in the post adoption period. Based on the research findings, the researcher recommends that developing nations should adopt IFRS as their financial reporting standard as it is capable of increasing their accounting quality. The researcher also recommends that research should be conducted to analyze why IFRS improves the accounting quality based on standard by standard, not the whole package.

The Comparability of Financial Information in Insurance Companies Using NiCE Qualitative Characteristics Measurement

“…The introduction of IAS/IFRS standardises the financial reporting of businesses, leading to an enhanced standard and quality of the information disclosed and helps decision-makers to better understand the financial statements of competitors. This is corroborated by research by Almehairi et al, Jibril, Young and Zeng, Cascino and Gassen, and Yurisandi and Puspitasri, among others [2][3][4][5][6].…”

“…This assessment is largely subjective since not all of its levels are unambiguous. Even if level 1 (changes not explained) is easy to identify, the remaining levels (2)(3)(4)(5) are not.…”

“…Comparability can also reduce the cost of obtaining information and make it more accessible [1]. Research into the comparability of financial reporting normally relates to the impact of reporting standards on the new ways of presenting financial information, e.g., [2][3][4][5][6], and confirms improvements to its quality. Existing research has covered business groups in a variety of industries, though chiefly non-financial enterprises.…”

Do IFRS Adoption Enhance the Financial Reporting Quality of DFM Listed Companies

“…Rousse [2] argue that the main objective of IFRS is to bring a higher level of transparency, accountability and efficiency to the financial markets around the world, as well as provides guidance on how the statements should be prepared. Previous studies discussed the important role played by IFRS to improve transparency and guaranty better comparability of financial reports [3][4][5][6][7][8][9][10][11][12]. Indeed, IFRS requirements urge companies to increase the level and quality of information disclosed in the financial report, which in turn help decision-makers by allowing them to better understand competitors' financial reports and thereby enhances information transfers across many firms and across countries.…”