Impact of the International Financial Reporting Standards Adoption on the Performance of Some Banks in Nigeria

Musa Jerry, Monica Maptree

Abstract


This study examines the Impact of the International Financial Reporting Standards (IFRS) adoption in the Nigerian banking Industry on the Bank Performance from 2008 to 2015. To guide the study, six null hypotheses were formulated and tested at 0.05 level of significance. The study used the ex-post facto research design and five banks were selected for the study. The research hypotheses were tested using the One-way ANOVA and Independent t-test with the aid of SPSS 21. The study revealed that there is no significant difference between the financial performances of banks; Debt Ratio (DR), Return on Assets (ROA), Return on Earnings (ROE), Debt Ratio (DR), Equity Ratio (ER), and Debt Equity Ratio (DER) of the Banks during the Pre and Post adoption of IFRS in Nigeria. This attributed to the fact that IFRS is only a consolidated financial statements that improve the quality of financial reporting via expanded financial statement disclosures, which reduce the measurement differences in company reporting standards owing to the relative national GAAP. The study recommends that the regulative organs should make it as a matter of urgency for organizations to adopt the uniform accounting practice. The adoption should also be monitored for effective implementation and enhanced financial performance.

Keywords


International Financial Reporting Standard, bank performance, Nigerian banking industry

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