Title:
INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION AND FINANCIAL REPORTING QUALITY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA.

Authors:
Solomon Pwagusadi Joyce, Nigeria

Abstract:

The quality of financial reports has been an issue of concern among regulators and other stakeholders globally especially after fraudulent financial reporting which led to the collapse of high profile firms, this made accounting regulators to scrutinize reporting practices and accounting Standard.  This prompted the review and Adoption of (IFRS) International Financial Reporting Standards. In Nigeria, IFRS was adopted in 2012 to curb financial manipulation and fraudulent financial reporting and therefore enhance financial reporting quality. The Financial reporting Quality is dependent on the Qualitative characteristics. This study examines the effect of the IFRS (Pre and Post Adoption Period) on financial reporting quality of Quoted Consumer Goods companies in Nigeria. Data were generated from the annual reports and accounts often sampled companies during the period 2006 to 2017. T-test was utilized to analyze the study data. It was found out that IFRS adoption has positive and significant effect, on the Relevance, Faithful Representation, Understandability, and Comparability of financial reporting of Quoted Consumer Goods in Nigeria. The study therefore recommends that listed consumer goods companies in Nigeria should strictly adhere to IFRS as a standard of reporting, high level of compliance should be ensured,  this will enhance the quality of the financial reports.