EVALUATION OF THE INFLUENCE OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON THE QUALITY OF FINANCIAL STATEMENTS OF SELECTED NIGERIAN BANKS

This study investigated the impact of IFRS on the quality of financial statements in Nigeria. In order to achieve the objectives of the study, secondary data of total assets, liabilities and equities were obtained from the Annual Reports and Accounts, and the Nigerian Stock Exchange Factbook during the period before IFRS adoption (2008- 2010) and three (3) years after IFRS adoption (2012-2014). A comparative analysis was done for the pre-and post IFRS adoption by first using the modified Gray Comparability Index and subjecting the results of the Comparability Index to a One-sample estimate. To determine the impact of IFRS on corporate financial reporting, we employed the Ordinary Least Square estimation technique with its Best Linear Unbiased Estimates (BLUES) property and the analysis was performed via the Statistical Package for Social Sciences (SPSS). Result obtained show that the adoption of IFRS by Nigerian banks significantly affected their total assets, liabilities and equities. In view of the findings, it was recommended among others that there is the need to strengthen the financial reporting system operated by banks in Nigeria by sending preparers of accounting information in these respective banks for further training so as to enable them fully upgrade their knowledge of IFRS. In addition, there is the need for firms to place a close watch on these accounting variables (assets, equities and liabilities) with respect to the adoption of IFR