Adoption of International Financial Reporting Standards (IFRS) and the Quality of Corporate Financial Reports of Listed Companies in Nigeria

Good quality of financial reports enhances stakeholders’ confidence and value of listed business entities. The quality of financial reports has attracted the concern of researchers in accounting literature and that there has been an ongoing issue of corporate report quality concern.  The capital market globalisation has heightened the pressure to have a standardised financial reporting language, resulting in the expansion in the use of International Financial Reporting Standards (IFRS). Literature has shown that in Nigeria, listed companies were required to use IFRS since 2012 in order to improve the quality of financial reporting and to become a part of the global economy. Nonetheless, ten years after the adoption, there are still concerns on whether there was a real change in the quality of financial reports. This paper explores how the adoption of IFRS affects the quality of corporate financial reporting in particular, in the qualitative attributes of relevance and faithful representation of fundamental nature among listed consumer goods firms in Nigeria. The survey research design was used with the data to be gathered through questionnaire of 100 persons in the top management of 10 purposely selected companies with a response rate of 88%. The analysis of data was performed based on descriptive and correlation. The results indicate strong, positive, and statistically significant effect of IFRS adoption on relevance (Adj R2 = 0.111, F-stat (2, 97) = 68.343, p < 0.05) and also indicate strong, positive, and statistically significant effect of IFRS adoption on faithful representation (Adj R 2 = 0.166, F-stat (2, 97) = 107.840, p < 0.05). The research also finds out that the adoption of IFRS has a tremendous positive impact on the quality of financial reporting in the consumer goods industry of Nigeria but it depends on the strong management skills, the high level of compliance, and effective institutional and regulatory frameworks. Regulators and corporate management are given recommendations on how to enhance these enablers to ensure a good quality of reporting is maintained.

Adoption of IFRS, Faithful representation, Quality of financial reports, Level of compliance, Management awareness and training, Relevance, Regulatory support.

1. A Review of the IFRS Adoption Literature. (2016). Journal of Accounting and Taxation, 8(1), 1–10. https://doi.org/10.5897/JAT2015.0181 [Google Scholar] [Crossref]

2. Agana, J. A., Mensah, S., & Botchway, E. (2025). From de jure to de facto: A multilevel analysis of substantive IFRS adoption in emerging economies. Journal of International Accounting, Auditing and Taxation, 48, 100567. https://doi.org/10.1016/j.intaccaudtax.2024.100567 [Google Scholar] [Crossref]

3. Agana, J. A., Zamore, S., & Domeher, D. (2023). Determinants and consequences of IFRS adoption in emerging economies: Evidence from Sub-Saharan Africa. International Journal of Accounting and Financial Reporting, 13(1), 1–23. https://doi.org/10.5296/ijafr.v13i1.20654 [Google Scholar] [Crossref]

4. Ahmed, A. S., Neel, M., & Wang, D. (2023). The contingent value of IFRS adoption: Re-examining accounting quality in the decade since mandatory implementation. Journal of International Accounting Research, 22(1), 45–67. https://doi.org/10.2308/jiar-2021-045 [Google Scholar] [Crossref]

5. Alabi, O. T., & Sanni, M. R. (2024). Enforcement capacity and the quality of IFRS compliance: Evidence from the Nigerian Stock Exchange. African Journal of Accounting and Financial Research, 7(2), 45–67. [Google Scholar] [Crossref]

6. Barth, M. E., Landsman, W. R., Lang, M. H., & Williams, C. D. (2022). Relevance and faithful representation of fair value information. The Accounting Review, 97(3), 1–25. https://doi.org/10.2308/TAR-2019-0535 [Google Scholar] [Crossref]

7. Brown, P., Preiato, J., & Tarca, A. (2024). The institutional determinants of IFRS effectiveness: A meta regression analysis. Accounting and Business Research, 54(3), 245–273. https://doi.org/10.1080/00014788.2023.2294567 [Google Scholar] [Crossref]

8. Brown, P., Tarca, A., & Preiato, J. (2023). Enforcement of accounting standards in emerging markets: A post-IFRS adoption review. Journal of International Financial Management & Accounting, 34(2), 210–245. https://doi.org/10.1111/jifm.12165 [Google Scholar] [Crossref]

9. Daske, H., Hail, L., Leuz, C., & Verdi, R. (2022). Mandatory IFRS adoption and financial reporting quality: A 15-year retrospective. Journal of Accounting and Economics, 74(1), 101528. https://doi.org/10.1016/j.jacceco.2022.101528 [Google Scholar] [Crossref]

10. Dechow, P., Ge, W., & Schrand, C. (2023). Earnings quality: A 2020s perspective. Accounting Horizons, 37(2), 1–25. https://doi.org/10.2308/HORIZONS-2021-098 [Google Scholar] [Crossref]

11. DiMaggio, P. J., & Powell, W. W. (2023). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. In J. L. W. (Ed.), Classic readings in organization theory (pp. 147–160). Routledge. (Original work published 1983). [Google Scholar] [Crossref]

12. Financial Reporting Council of Nigeria (FRCN). (2023). Annual report on IFRS compliance and enforcement. FRCN Publications. [Google Scholar] [Crossref]

13. Gana, J. A., Zamore, S., & Domeher, D. (2023). Determinants and consequences of IFRS adoption in emerging economies: Evidence from Sub-Saharan Africa. International Journal of Accounting and Financial Reporting, 13(1), 1–23. https://doi.org/10.5296/ijafr.v13i1.20654 [Google Scholar] [Crossref]

14. International Accounting Standards Board (IASB). (2024). Conceptual framework for financial reporting. IFRS Foundation. [Google Scholar] [Crossref]

15. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Applied Corporate Finance, 34(4), 65–82. (Original work published 1976). https://doi.org/10.1111/jacf.12520 [Google Scholar] [Crossref]

16. Kang’ethe, F., & Adeyemi, S. B. (2024). Management training and successful IFRS implementation in West Africa. International Journal of Accounting, Auditing and Performance Evaluation, 20(1), 1–20. [Google Scholar] [Crossref]

17. Kang’ethe, S. M., & Adeyemi, S. B. (2025). Bridging the competency gap: IFRS training, managerial judgment, and financial reporting quality in West Africa. Journal of Accounting in Emerging Economies, 15(1), 112–135. https://doi.org/10.1108/JAEE-04-2024-0123 [Google Scholar] [Crossref]

18. Leuz, C. (2024). The economic consequences of disclosure regulation: Evidence from IFRS adoption revisited. Journal of Accounting Research, 62(1), 191–234. https://doi.org/10.1111/1475-679X.12518 [Google Scholar] [Crossref]

19. Leuz, C., & Wysocki, P. D. (2023). The economics of disclosure and financial reporting regulation: Evidence from the IFRS experiment. Journal of Accounting Research, 61(2), 533–588. https://doi.org/10.1111/1475-679X.12486 [Google Scholar] [Crossref]

20. Ntim, C. G., Soobaroyen, T., & Broad, M. J. (2023). Corporate governance, IFRS adoption and transparency in Africa. The British Accounting Review, 55(2), 101135. https://doi.org/10.1016/j.bar.2022.101135 [Google Scholar] [Crossref]

21. Ntim, C. G., Soobaroyen, T., & Broad, M. J. (2025). Corporate governance, isomorphic pressures, and substantive IFRS compliance in Africa. The British Accounting Review, 57(1), 101298. https://doi.org/10.1016/j.bar.2024.101298 [Google Scholar] [Crossref]

22. Nwosu, C., & Onyekwere, S. (2025). Intangibles, ESG performance, and the evolving relevance of financial information. Journal of Applied Accounting Research, 26(1), 78–102. https://doi.org/10.1108/JAAR-03-2024-0095 [Google Scholar] [Crossref]

23. Nwosu, K. E., & Onyekwere, C. A. (2025). IFRS adoption and reporting quality among multinational subsidiaries in Nigeria. Journal of African Business, 26(1), 95–118. [Google Scholar] [Crossref]

24. Ohlson, J. A. (2022). Earnings, book values, and dividends in equity valuation: A contemporary reassessment. Contemporary Accounting Research, 39(2), 1123–1152. https://doi.org/10.1111/1911-3846.12765 [Google Scholar] [Crossref]

25. Okpala, O. E. (2024). Value relevance of accounting information in the Nigerian consumer goods sector: A pre and post IFRS longitudinal study. International Journal of Critical Accounting, 14(2), 89–112. [Google Scholar] [Crossref]

26. Okpala, O. P., & Chijoke-Mgbame, A. M. (2024). Value relevance of accounting information in the Nigerian consumer goods sector: A pre- and post-IFRS analysis. Journal of African Business, 25(1), 120–140. https://doi.org/10.1080/15228916.2023.2254321 [Google Scholar] [Crossref]

27. Spence, M. (1973). Signaling in markets: An update. Journal of Economic Perspectives, 36(3), 111–130. https://doi.org/10.1257/jep.36.3.111 (Original work published 1973). [Google Scholar] [Crossref]

28. Umoren, A. O., & Enang, E. R. (2025). Faithful representation in the era of climate risk: Estimating uncertainty and neutrality in integrated reports. Sustainability Accounting, Management and Policy Journal, 16(2), 334–359. https://doi.org/10.1108/SAMPJ-08-2024-0550 [Google Scholar] [Crossref]

29. Umoru, H. F., & Adegoke, M. O. (2024). Professional readiness and post-IFRS reporting quality in Nigeria’s non-financial firms. African Accounting and Finance Review, 18(2), 77–99. [Google Scholar] [Crossref]

30. Umoru, T. A., & Adegoke, A. J. (2024). Audit quality, professional training lags, and the implementation gap of IFRS in Nigeria. Research in Accounting in Emerging Economies, 18, 155–177. [Google Scholar] [Crossref]

31. Wadesango, N., Tasa, N., Wadesango, V. O., & Milondzo, K. S. (2016). The impact of IFRS adoption on financial reporting: Evidence from developing countries. Risk Governance and Control: Financial Markets & Institutions, 6(4), 485–493. [Google Scholar] [Crossref]

• Investigating the Performance of Colour Oxide on the PS/CNSO Oil Paint Production
• Real-Time Fabric Defect Detection Using a Lightweight Deformable YOLO Network
• Recent Trends in the Stock Market: An Analytical Study of Market Dynamics, Investor Behaviour, and Technological Influence
• Evaluation of Structural Dynamics and Equilibrium State, with Case Study of Large Cantilever Projection for a 10- Storey Reinforced Concrete Building in Lagos, Nigeria.
• Multi-Criteria Evaluation of AI-Based Adaptive Learning Platforms in Global Higher Education: A Fuzzy AHP Perspective