The impact of IFRS adoption on the Financial Reporting Quality in Nigeria

SUMMARY 

This study investigated the effect of IFRS adoption on both Accrual and Real Earnings Management in Nigeria using a sample of Listed and Unlisted companies in the Nigeria Exchange Group (NGX). The result of the study shows that IFRS have a negative effect on Earnings Management. This result is robust on Accrual Earnings Management using Jones (1991) and Modified Jones (Dechow et at., 1995) and shows that IFRS curb/checkmate Accrual Earnings Management. Accrual Earnings Management in the periods after IFRS adoption was lower compared to pre- IFRS adoption. This result also supports the expectation that IFRS provide more accurate information (Ball, 2006) and increase firm’s Earnings Quality.