Influence of IFRS Adoption on the Financial Reporting Quality of Nigerian Public Companies

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• September 16, 2025
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Geoffrey Ndubuisi Udefi PhD¹, Onah, Kelvin Amobi PhD², Nnabuenyi, Cherechi Flourish³, & Festus Ndubuisi Nkwo^4
1Department of Accountancy, Alex Ekwueme Federal University Ndufu-Alike (AE-FUNAI), Ebonyi State, Nigeria
²Department of Accountancy, University of Nigeria, Enugu Campus, Nigeria
^{3 4} Department of Accountancy, Gregory University Uturu, Abia State, Nigeria

Abstract This study examines the influence of International Financial Reporting Standards (IFRS) adoption on the financial reporting quality of Nigerian public companies. Using a survey of 300 accounting officers from firms listed on the Nigerian Exchange Group (NSE), data were analyzed through descriptive statistics and regression analysis. Results indicate that a majority of respondents recognize significant improvements in key qualitative attributes of financial reporting, with over 58% affirming enhanced faithful representation and comparability, and more than half rating relevance as high or very high. These subjective findings are corroborated by regression results showing a strong, statistically significant positive effect of IFRS adoption on reporting quality (β = 0.657, p < 0.001). However, perceptions vary across sectors: 63% reported improved reporting quality post-IFRS, while 18% saw no change and some noted declines. Sectoral differences are statistically significant (β = 0.215, p = 0.028), reflecting uneven implementation outcomes. Major challenges identified include lack of technical expertise (33%) and high compliance costs (26%), which negatively impact reporting quality, confirmed by a significant negative regression coefficient (β = -0.354, p = 0.015). Despite these obstacles, 10% of respondents observed improvements in reporting quality, highlighting adaptive capacities within firms. The study concludes that while IFRS adoption generally enhances financial reporting quality in Nigeria, targeted interventions are necessary to address sectoral disparities and implementation challenges for optimal benefits Keywords IFRS Adoption; Financial Reporting Quality; Nigerian Public Companies; Accounting Standards; Implementation Challenges Citation Udefi, G. N., Onah, K. A., Nnabuenyi. C. F. & Nkwo, F. N. (2025). Influence of IFRS Adoption on the Financial Reporting Quality of Nigerian Public Companies. International Journal of Advanced Finance and Accounting, 6(2), 1-10 https://doi.org/10.5281/zenodo.17113270