Accounting Standards Convergence, IFRS Adoption and Effects on Comparability

Ruth Oziohun Emeje ACA Msc

doi:10.56201/jafm.vol.12.no2.2026.pg149.161

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Accounting Standards Convergence, IFRS Adoption and Effects on Comparability

Ruth Oziohun Emeje ACA Msc

Abstract

This study examines accounting standards convergence and International Financial Reporting Standards adoption with particular emphasis on their effects on financial statement comparability among listed firms. The motivation for the study arises from the increasing globalization of capital markets and the growing demand for transparent, consistent and comparable financial information to support investment and regulatory decisions. The study adopts an ex post facto research design and relies on secondary data obtained from the audited annual reports and financial statements of selected listed firms over the period 2019 to 2024. Financial statement comparability is measured using accounting-based comparability indices, while IFRS adoption and accounting standards convergence serve as the key explanatory variables. Firm size and leverage are included as control variables to account for firm specific characteristics. Data are analyzed using descriptive statistics and multiple regression techniques to test the formulated hypotheses at the five percent level of significance. The findings reveal that IFRS adoption has a significant positive effect on financial statement comparability, indicating that the use of a common reporting framework enhances consistency and transparency in financial reporting. Accounting standards convergence is also found to significantly improve cross firm and cross- country comparability. The study concludes that while accounting standards convergence and IFRS adoption have contributed meaningfully to improved financial statement comparability, their effectiveness depends largely on enforcement quality and institutional support. The study therefore provides useful insights for regulators, policymakers and practitioners seeking to strengthen the comparability of financial reporting in emerging market environments.

References

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Accounting Standards Convergence, IFRS Adoption and Effects on Comparability

Abstract

References

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