ABSTRACT

Abstract

This study investigates the effect of IFRS adoption on reporting quality in Nigeria. Secondary data were sourced from financial reports of a sample of 79 quoted Nigerian firms. Data was obtained with the help of Nimegen Centre for Economics (NiCE) qualitative reporting index for reporting quality. The study covered a period of 10 years, i.e. 2007 to 2011 as SAS regime and 2012 to 2016 IFRS regime. ANOVA test and descriptive analysis, were utilised for the analysis. The study concludes that, IFRS adoption has made significant positive difference in the extent of reporting quality. It is recommended that Nigerian firms should adopt appropriate measures to improve the level of relevance, comparability and verifiability of their financial reports. This can be attained through provision of more forward-looking information, reduction in the use of technical jargons and appointment of more reputable audit firms. The study also recommends that Financial Reporting Council of Nigeria (FRCN) should change its approach from post-financial reporting compliance audit, to pre-financial reports compliance audit.

Keywords: Adoption; Financial; Reporting; Standards; Quality. ­