Title: Impact Of International Financial Reporting Standards Adoption On Financial Reporting Quality: Evidence From Union Bank Of Nigeria Plc
Authors: Adejo Odekina Okeme
Elias Samuel Unekwu
Onoja John
Volume: 10
Issue: 7
Pages: 151-161
Publication Date: 2026/07/28
Abstract:
The adoption of International Financial Reporting Standards (IFRS) has transformed financial reporting practices by promoting transparency, comparability, and accountability across global financial markets. Despite Nigeria's mandatory adoption of IFRS, empirical evidence regarding its effectiveness in enhancing financial reporting quality within individual deposit money banks remains inconclusive. This study investigated the impact of IFRS adoption on financial reporting quality in Union Bank of Nigeria Plc. Specifically, the study examined the influence of IFRS adoption on transparency and disclosure quality, earnings management, and the value relevance of accounting information. An ex-post facto research design was employed using secondary data extracted from the audited annual financial statements of Union Bank of Nigeria Plc covering the period 2012-2024. Analysis of Variance (ANOVA) was used to test the hypotheses at a 5% level of significance. The findings indicate that IFRS adoption significantly improved disclosure quality and transparency, reduced earnings management, and enhanced the value relevance of accounting information throughout the study period. The study concludes that IFRS adoption has substantially improved financial reporting quality by strengthening the credibility, reliability, and decision usefulness of financial statements. It recommends stronger regulatory enforcement, continuous professional training, improved corporate governance practices, and periodic review of compliance mechanisms to sustain the benefits of IFRS implementation in the Nigerian banking sector.