The Role of International Reporting Standards (IFRS) in Financial Reporting Quality: Evidence from Nigeria
- Post by: airjournals
- September 28, 2022
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ABSTRACT
The purpose of this study is to explore the role of International Reporting Standards (IFRS) in financial statement quality. Financial reporting is increasingly viewed as a vital tool that contributes to a firm’s growth if properly carried out. IFRS will however improve the quality and reliability of these financial reports, this is the core of the research. Data were gathered from all listed money deposit institutions in Nigeria, we conducted a census survey to prevent the mistake sometimes associated with sampling. Data was sourced from the content analysis of annual reports and accounts of the selected commercial banks for ten years from the year 2003 to 2011 for the pre-IFRS period and from 2013 to 2021 for the post-IFRS period. The year 2012 was excluded as it was the year of adoption. The research strategy is a panel design because it is a combination of longitudinal and cross-sectional data. The Mann-Whitney test was used to evaluate the data. It is a non-parametric test designed to evaluate any issue’s initial and subsequent effects. In this instance, the test was run to confirm our hypotheses and ascertain whether there was a statistically significant difference in the quality of financial reporting prior to and following the introduction of IFRS at the 5% level. The theory on which this research was based is the Stakeholder’s theory. The findings of the research work show that IFRS play a very significant role in the quality of financial statements being prepared.
Keywords: IFRS Adoption, Financial Reporting Quality, Reliability of Financial Statement
BY
Egiyi, Modesta Amaka