Pre and post IFRS and value relevance of accounting information of money deposit banks in Nigeria

Abstract

This study sets out to demonstrate the difference between pre and post IFRS EPS and BVPS in the MDBs in Nigeria. Experimental design of pre-post test research was employed using dependent paired samples t-test to compare the mean differences in value relevance of EPS and BVPS. The results reveal significant values of 0.001 < 0.05 and 0.013 < 0.05 for EPS and BVPS individually. There was also found an average increase of 0.52 and 4.58 for EPS and BVPS which is not by chance variations but attributable to the adoption of IFRS. The implication suggests IFRS adoption worthwhile for increasing the value relevance of the accounting information, quality, reliability, comparability and understandability of financial statements. The study recommends increased compliance and appreciation of shareholders' confidence plus enhanced interest in investment of resources for anticipated increase in EPS and BVPS in MDBs in Nigeria.