ABSTRACT

The adoption of International Financial Reporting Standards (IFRSs) in several nations has raised concerns about the significance, relevance and reliability of IFRS-based financial reports. International Financial Reporting Standards (IFRSs) aim to provide consistent and high-quality financial reporting. Over the past decade, various Nigerian firms have failed due to issues about their financial statements. This study examines how IFRSs affect the quality of financial statements in Nigerian firms, focusing on significance, relevance, and reliability quality objectives of the standard. The population consists of 14 banks quoted on the Nigeria Stock Exchange (NSE). The study's sample size was based on a census of these banks. Secondary data sources included selected banks' annual reports and accounts. The acquired data was analyzed using descriptive and inferential statistics. MANOVA was used to perform inferential statistics to determine the significance of IFRS to financial reporting in Nigeria. Descriptive statistics were used to determine the reliability and relevance of financial reporting in Nigeria. The study's sample size was determined by applying the census sampling technique on all 14 banks. While for the reliability and relevance concept we focused primarily on the financial statements of Zenith PLC. Based on the analysis, it was revealed IFRS adoption has significantly affected the quality of financial statements in Nigeria. However, such improvements are yet to be seen in the reliability quality of financial statements. This fact has prompted the need for external auditors over the last decade. The study recommends firms to prepare their financial statements in accordance with IFRS. It also calls on various stakeholders such as the professional bodies and regulatory agencies to embark upon subsidized training for members within their sectors to increase their awareness, knowledge and applications of IFRS.