Abstract
This study concentrated on evaluating the value relevance of accounting quality in Nigeria both before and after the mandatory adoption of IFRS as a reporting standard for the period of two (2) years (2011-2012) using annual reports of the whole (108) companies quoted on Nigerian stock exchange with exclusion to companies that operate in financial services sector of the market, criteria were used to arrive at the sample of 91 listed firms, Secondary data and Ordinary least Square (OLS) was engaged in analyzing the data extracted for this study, using STATA 13, Analysis was done using Pre IFRS and Post IFRS, the study discovered that value relevance of accounting quality is higher in the post-IFRS adoption period compared to that of the pre-adoption period. The study recommended that other developing nations should adopt IFRS as their financial reporting standard since it is accomplished of increasing their value relevance of accounting quality.
Highlights
International Financial Reporting Standards (IFRSs) are set of principle-based accounting standards issued by an independent accounting standard body called International Accounting Standard Board (IASB) to harmonize the standards issued by country- based accounting standard boards
Nigeria like many other nations in the world has adopted IFRS as reporting standard, in which all Publicly listed bodies are mandatory to adopt IFRS starting from 1st January 2012, other public interest bodies are mandated to adopt the said standards as from 1st January 2013, while small & medium-sized entities should comply with IFRS for SMEs starting from 1st January 2014
This study aims to evaluate the impact of mandatory adoption of IFRS and Value relevance of accounting quality for the sample of listed companies in Nigerian stock exchange
Summary
International Financial Reporting Standards (IFRSs) are set of principle-based accounting standards issued by an independent accounting standard body called International Accounting Standard Board (IASB) to harmonize the standards issued by country- based accounting standard boards. Nigeria like many other nations in the world has adopted IFRS as reporting standard, in which all Publicly listed bodies are mandatory to adopt IFRS starting from 1st January 2012, other public interest bodies are mandated to adopt the said standards as from 1st January 2013, while small & medium-sized entities should comply with IFRS for SMEs starting from 1st January 2014 They are intended with a view of humanizing the quality of reporting system and increase the comparability of financial statements universally; thereby improving the decision usefulness of financial reports across the world (Ball, 2006; Müller, 2014; Paglietti, 2010). Abbas Usman Jurnal Intelek Vol 16, Issue 1 (Feb) 2021
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