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Published:
Apr 12, 2016DOI:
10.4314/just.v35i3.7Keywords:
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International financial reporting standards and financial reporting quality in Nigeria
Abstract
The study examines the impact of the adoption of International Financial Reporting Standards (IFRS) on the quality of financial reporting in Nigeria. The study utilises a period based approach to analyse changes in the degree of financial reporting quality (FRQ) that hinges on three proxies: Value Relevance, Earnings Quality and Earnings Management. Three models were developed to capture each proxy, and the models were analysed using regression analysis to evaluate the R2 statistics; which captured the direction of change in the reporting quality. The results showed that financial reporting quality increased after the adoption of the IFRS for all the relevant proxies. The study concludes that the adoption of IFRS to enhance financial reporting quality while reducing the probability of earnings management practices could be beneficial in the long run to the Nigerian financial landscape.
Keywords: Reporting Standards, Value, Relevance, Earnings, Management
