The Effect of International Financial Reporting Standards (IFRSs) on the Quality and Relevance of Accounting Information for Global Investment Decision Making in Nigeria.

  • Oluwayemisi Ali-Momoh
Keywords: IFRSs Adoption, Accounting Quality, Financial Reporting, Value Relevance

Abstract

This study provides a comprehensive analysis of the effect of International Financial Reporting Standards (IFRS) adoption on accounting quality and value relevance for listed manufacturing companies in Nigeria. The study employs a quantitative approach, utilizing linear regression models to examine the relationship between IFRSs adoption and the value relevance of financial information, considering variables such as earnings per share (EPS), book value of equity (BVE), total assets (TA), and return on assets (ROA). The study revealed that there is a positive and statistically significant effect of IFRSs adoption on the value relevance of financial information. This aligns with the theoretical underpinning of IFRSs, emphasizing transparency, accountability and comparability in financial reporting. The study also highlights the consistency of financial variables in influencing market value of equity, reinforcing the importance of fundamental factors in firm valuation. Thus, the complex relationship between IFRSs adoption and financial reporting outcomes underscores the need for further research to explore contextual factors mediating this effect.

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Published
2023-12-26