International Financial Reporting Standards (IFRS) Implementation and Quality of Financial Reporting of Commercial Banks in Nigeria

Abstract

The study mainly examined the impact of International Financial Reporting Standards (IFRS) implementation on the quality of financial reporting of commercial banks quoted on the Nigerian Exchange Group (NGX). Earnings management, value relevance and timely loss recognition were used as proxies to measure quality of financial reporting banks. This research work employed the Ex-Post Facto research design. The data were extracted from the published annual reports and financial statement of ten (10) selected commercial banks listed on the Nigerian Exchange Group (NGX) for the relevant years sampled for analysis. The sample for the study consists of ten banks after filtering out fourteen banks on the basis of: Banks that were in existence and listed as at 31 December 2021 and banks that have not been taken over, acquired or merged by other banks or changed their names between 2005 to 2021. Secondary data on ten listed commercial money banks were analyzed using Paired Student t-test. The study used financial statements of the selected banks for ten (10) years; 2005 – 2011 for pre-IFRS era and 2015 – 2021 for post-IFRS era. The findings revealed that there is a significant mean difference in value relevance (measured using book value of shares) of commercial banks in Nigeria before and after the implementation of IFRS, while there is an insignificant mean difference in earnings management (measured using total revenue) and timely loss recognition (measured using earnings per share) of listed commercial banks in Nigeria before and after the implementation of IFRS. Based on the findings, the study

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