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The Impact of IFRS Adoption on the Quality of Financial Reporting in Nigerian Banks

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  • February 26, 2025
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Ojeh, Augustine PhD FCA*1, Geoffrey Ndubuisi Udefi PhD2, Ngwa, Christian Ugonna PhD3 & Amaechi, Marcellus Chukwu PhD4

1 3Department of Accountancy, Enugu State University of Science and Technology ESUT, Enugu State, Nigeria
2Department of Accountancy, Alex Ekwueme Federal University Ndufu-Alike (AE-FUNAI), Ebonyi State, Nigeria
4Department of Marketing, University of Nigeria, Enugu Campus

ABSTRACT
This study investigates the impact of IFRS adoption on the quality of financial reporting in Nigerian banks, with a focus on accuracy, transparency, and comparability. It also explores the challenges encountered during implementation and the consequences of non-compliance on stakeholder trust and investment inflows. Data were collected through a survey of 222 respondents, including banking professionals and financial analysts, who shared their perspectives on the adoption process. The findings revealed that the majority of respondents (67.57%) believed that IFRS adoption significantly improved the accuracy of financial reports, while 54.05% felt that it enhanced the transparency of financial reporting. However, banks faced several challenges, particularly the lack of staff training (40.54%), high implementation costs (27.03%), and the complexity of IFRS standards (20.27%). Furthermore, non-compliance with IFRS was perceived as detrimental to stakeholder trust (54.05%) and investment inflows (67.57%), with a small minority suggesting that non-compliance could potentially improve trust or have no impact. Based on these findings, the study recommends enhanced staff training, financial support for IFRS implementation, and stricter monitoring and enforcement of compliance. This research underscores the importance of IFRS adoption in improving financial reporting quality and maintaining credibility in Nigerian banks.
Keywords: IFRS Adoption; Financial Reporting; Nigerian Banks; Investment Inflows; IFRS Standards

EJFMS 9(1) 1-15Download

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