Impact of IFRS Adoption on Transparency, Comparability and Consistency of Bank Financial Reporting

Okoro; Chukwuemeka; Professor G.A.N Ama; Professor N.O. Dibia

doi:10.56201/jafm.vol.12.no5.2026.p.298.313

📄 Download Paper

Impact of IFRS Adoption on Transparency, Comparability and Consistency of Bank Financial Reporting

Okoro, Chukwuemeka, Professor G.A.N Ama, Professor N.O. Dibia

Abstract

The adoption of International Financial Reporting Standards has been widely promoted as a means of enhancing the quality of financial reporting across countries and industries, particularly in the banking sector where transparency and credibility are critical. This study examines the impact of IFRS adoption on the transparency, comparability, and consistency of bank financial reporting. Using a combination of empirical analysis and review of financial statements from selected banks before and after IFRS implementation, the research evaluates whether IFRS has improved the clarity, disclosure quality, and uniformity of financial reports. The findings suggest that IFRS adoption significantly enhances transparency by increasing the level of disclosures and reducing information asymmetry between banks and stakeholders. In terms of comparability, the use of a common global reporting framework allows for easier cross- border and inter-bank financial analysis. Furthermore, IFRS promotes consistency in the preparation and presentation of financial statements over time, although challenges such as implementation costs, professional judgment, and regulatory differences may limit full uniformity. The study concludes that while IFRS has substantially improved financial reporting quality in the banking sector, continuous regulatory support and professional training are necessary to maximize its benefits. These findings are relevant to policymakers, financial institutions, investors, and accounting professionals seeking to strengthen financial reporting practices. JAFM JAFM

References

Ahmed, A. S., Neel, M., & Wang, D. (2013). Does mandatory adoption of IFRS improve accounting quality? Contemporary Accounting Research, 30(4), 1344–1372. https://doi.org/10.1111/j.1911-3846.2012.01193.x Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467–498. https://doi.org/10.1111/j.1475-679X.2008.00287.x Daske, H., Hail, L., Leuz, C., & Verdi, R. (2013). Adopting a label: Heterogeneity in the economic consequences of IFRS adoptions. Journal of Accounting Research, 51(3), 495– 547. https://doi.org/10.1111/1475-679X.12005 Desalegn, G. (2020). IFRS adoption and financial reporting quality of banks in Ethiopia. Fitrianti, N., Ria, N., & Fatmasari, R. R. (2024). Investigating the impact of IFRS on global financial transparency. Journal of Economics, Accounting, Business and Management. Hassan, A. O., & Musa, W. A. (2023). IFRS disclosure guidelines and acceptability of financial reporting framework: Evidence from listed deposit money banks in Nigeria. Ike, R. C., & Ezeilo, F. I. (2025). Effect of financial reporting standards in enhancing transparency and accountability of energy firms in Nigeria. African Journal of Accounting and Financial Research. Kim, Y. S. (2020). The effect of consistency in accounting choices on financial statement comparability. Global Business and Finance Review, 25(3), 19–33. Martens, W., Yapa, P., & Safari, M. (2020). The impact of financial statement comparability on earnings management. International Journal of Financial Studies, 8(4), 73. Nwaogwugwu, C. C. (2020). Effects of IFRS adoption on financial performance of listed banks in Nigeria. Ojeh, A., Udefi, G. N., Ngwa, C. U., & Amaechi, M. C. (2025). The impact of IFRS adoption on the quality of financial reporting in Nigerian banks. Okolo, M. N. (2024). Unmasking earnings management in Nigerian banks: The IFRS approach. Opare, S., Houqe, M. N., & van Zijl, T. (2021). Meta-analysis of the impact of IFRS adoption on financial reporting comparability. Abacus, 57(3), 502–556. Saied, B. A. (2025). Impact of IFRS 7 and IFRS 9 on transparency and comparability of Egyptian banks. Salter, S. B., Duong, H. K., & Gupta, G. (2025). Has the IASB successfully achieved its stated goals? Journal of Theoretical Accounting Research, 21(1), 80–121. Samuel, I. I., & Sulaiman, T. H. (2024). Impact of IFRS adoption on financial reporting practices in Nigerian banks. Tarca, A. (2020). IFRS and comparability of financial reporting.

Impact of IFRS Adoption on Transparency, Comparability and Consistency of Bank Financial Reporting

Abstract

References

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT