Title page

Approval page




Table of content



1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study




3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis



4.1 Introductions

4.2 Data analysis


5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation












The IFRS adoption is already an issue of global relevance among various countries of the world due to the quest for uniformity, reliability and comparability of financial statements of companies. This research paper investigated the effect of IFRS adoption on Financial Statements. The population consists of staff of First bank nigeria PLC. Simple Random sampling method was adopted and primary data used to elicit responses with 71 structured questionnaires administered. Findings showed that IFRS has been adopted in Nigeria but only fraction of companies has implemented with deadline for the others to comply. It is perceived that IFRS implementation will promote quality financial statements, increase FDI inflows and economic growth. It was recommended that all stakeholders should endeavour to have full implementation to reap benefits of the global GAAP and principle – based standards







  • Background of the study

This study sets out to examine whether the impact of International Financial Reporting Standards (IFRS) in Nigeria has improved the quality of financial reporting in First Bank of Nigeria Plc. Nigeria adopted IFRS, and then referred to as International Accounting Standards (IAS), in 1999 through a resolution by the Council of the Institute of Certified Public Accountants of Nigeria (ICPAN), the legally mandated accounting institute in Nigeria. The study compares changes in the quality of accounting between the pre-adoption period from 1995 to 1999 and the post adoption period from 2000 to 2004. The study specifically tests whether there is less earnings management, more timely loss recognition and higher value relevance in the adoption period as opposed to the pre adoption period. It also takes a global perspective to the IFRS question in relation to quality. The outcomes of the study show mixed results with some of the metrics indicating a marginal increase in accounting quality and others showing a decrease in the quality of accounting. Globalization of markets requires a unified global accounting, reporting and disclosure sets of standards. As a result of increasing volume of cross border capital flows and growing number of foreign direct investments in the globalization era, the need for the harmonization of different practices in accounting and the acceptance of worldwide standards has risen. This has led to either convergence or adoption of the international financial reporting standards in countries across the globe including Nigeria (Adejola, 2012). Financial statements apart from stating the financial position and performance of an organization, provides other information such as the value added, changes in equity if any and cash flows of the enterprise within a defined period of time to which it relates (Iyoha and Faboyede, 2011). The quality of financial reporting is indispensable to the need of users who requires them for investment and other decision making purposes. Financial reporting can only be regarded as useful if it represents the economic substance of an organization in terms of relevance, reliability, comparability, and aids interpretation simplicity (Penmam, 1984). Ahmed (2003) stated that useful accounting information derived from qualitative financial reports help in efficient allocation of resources by reducing dissemination of information asymmetry and improving pricing of securities. To prepare and audit financial statements, some accounting conventions and principles known as standards have been put in place by appropriate body set up for the purpose to encourage uniformity and reliability.

The implementation of IFRS would reduce information irregularity and strengthen the communication link between stakeholders (Bushman and Smith, 2001). It also reduces the cost of preparing different versions of financial statements where an organization is a multi-national (Healy and Palepu, 2001). The goals of the IFRS foundation and the International Accounting Standards Board (IASB) is to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles. In pursuit of this goal, the IASB worked in close cooperation with stakeholders around the world, including investors, academicians, and others who have interest in the development of high-quality global standards (Akinyemi, 2012). Since their inception, International Accounting Standards have been produced by two bodies. The first, the International Accounting Standards Committee (IASC) came up with 41 accounting standards between 1973 and 2000. The IASC was replaced by the International Accounting Standards Board (IASB) in the year 2000. The new Board embarked on a review processes aimed at refining the standards. The result was a reduction in the number of standards from 41 in the year 2000 to 28 by the year 2008. By 2011, 13 standards had been issued by the board as International Financial Reporting standards (IFRS). According to IAS Plus (2010), IFRS refers to the entire body of IASB pronouncements including standards and interpretations approved by IASB, IASC and their interpretations produced by the Accounting Standards Interpretations Committee (IASIC). IFRS orIAS have also been described as a set of standards stating how particular types of transactions and other events should be reflected in financial statements, issued by IASC and IASB (ACCA 2008:41). The primary objective of the accounting standards is to enable corporations to provide investors and creditors with relevant, reliable and timely information which is in line with the IASB’s accounting framework for the preparation and presentation of Financial Statements. Such information, it is argued, contributes towards the achievement of orderly capital markets around the world Imhoff (2003:117). The concept of accounting quality is based on the IASB framework where relevance, reliability, understandability and comparability (IFRS 2006:38) are key components and therefore, assumed that financial statement with the four qualitative characteristics have better quality. Chen et al. (2010:222) has simply described accounting quality as the extent to which the financial statement information reflects the underlying economic situation. In simple terms, this study seeks to establish if the adoption of IFRS has improved qualitative characteristics of the financial reporting in Nigeria, where such improvement would be regarded as improvement in quality.
In spite of the arguments, many countries and companies have adopted IFRS and the need to evaluate their impact has been overwhelming. Barth et al. (2007:2) indicate that accounting amounts results from interaction of features of the financial reporting system which include accounting standards, their interpretations, enforcement, and litigation and this obviously leads to obtaining different results from application of the same standards. Ball et al. (2003) by extension argue that high quality standards like IFRS may also lead to low quality accounting information depending on the incentives of the preparers. It is these contradictions that led Ball et al. (2003) and others to conclude that poor preparer incentives, underlying economic and political factors influence manager and auditors incentives as opposed to accounting standards. Many factors have also been cited as impacting financial reporting practices such as effective enforcement of standards and strong corporate governance.


Although many countries have faced challenges in their decisions to adopt IFRS, its wide spread adoption has been promoted by the argument that the benefits outweigh the costs. Recently there has been a push towards the adoption of IFRS developed and issued by the International Accounting Standards Board (IASB). The organizations should enable regulators and other key player to gauge the effectiveness of the financial reporting system in place such as training and development for practitioners and new members, due diligence for Accounting standards and the overall institutional and professional organization conducive for effective standards application.
Therefore, implementation of IFRS would reduce information irregularity and strengthens the communication like between all shareholders and also reduces the cost of preparing different version of financial statements where an organization is a multi-national.


The objective of the study is to find out the following:

  1. To examine the impact of IFRS on quality of financial statement in First Bank of Nigeria Plc.
  2. To examine whether the International Financial Reporting Standards (IFRS) in Nigeria has improved the quality of financial reporting in First Bank of Nigeria Plc.
  3. To find out role the of IFRS play in banking institutions in Nigeria.
  4. To determine whether IFRS adoption and implementation has been made positive impact in Nigeria.
  5. To find out the problems confronting the staff of First Bank of Nigeria Plc in adopting IFRS into system.
  6. To make useful recommendations based on the findings of the study.



  1. i) Does IFRS aid quality of financial statement in First Bank of Nigeria Plc?
  2. ii) Does International Financial Reporting Standards (IFRS) in Nigeria improved the quality of financial reporting in First Bank of Nigeria Plc?

iii) Does IFRS play any significant role in banking institutions in Nigeria?

  1. iv) Has there been effective implementation and adoption of IFRS in First Bank of Nigeria Plc?
  2. v) Is there any problem confronting the staff of First Bank of Nigeria Plc, Uyo in enhancing quality financial statement?



H0: IFRS does not aid quality of financial statement in First Bank of Nigeria Plc.

H1: IFRS does aid quality of financial statement in First Bank of Nigeria Plc.

H0: IFRS does not play any significant role in banking institutions in Nigeria.
H1: IFRS play any significant role in banking institutions in Nigeria.

H0: There is no significance relationship between effective implementation and adoption of IFRS in First Bank of Nigeria Plc.
H1: There is a significance relationship between effective implementation and adoption of IFRS in First Bank of Nigeria Plc.


The ultimate goal of every industry or organization including banks is to quality financial reporting (statement) information is issued to public. This goal can be achieved in the banking sector adopting IFRS for effective financial reporting.
This study necessary because would enable the managers of First Bank of Nigeria Plc, and other banks to improve on their implementation of the standards.
It would also help the employers, employees and the potential investors who may want to invest on the company.
Finally, it would serve as a reference source to students or other researchers who might want to carry out their research on the similar topic.


The study concerns about the impact of IFRS on quality of financial statements with a particular reference to First Bank of Nigeria Plc.


The limitation of this study was inability of management to divulge certain information which they consider sensitive and fear of publication which might be detrimental to their operation.
Another limitation to the study is time constraint. The period within which the study is conducted is short for a thorough research work, hence gathering adequate information becomes very difficult.
Also, finance is one of the limitations to study. The researcher is facing financial constraint to meet the all the needed educational requirements including this research study. This caused the researcher to restrict his research to one company for possible completion of the study.
Finally, lack of materials on the topic. This is new in the area of quality of financial statement in Nigeria. Therefore, the researcher resolved to seek friendly approach in order to obtain the needed materials or information from the organization under study through the administration of questionnaire.


IFRS: International Financial Reporting Standard.

FINANCIAL STATEMENTS: Financial statements are a collection of reports about an organization’s financial results, conditions and cash flows.

IAS: International Accounting Standards.

GAAP: Generally Accepted Accounting Principles.

ACCOUNTING: This is defined as the process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information (Frank Wood & A. Sangster, 2005).

INCOME STATEMENT: Income statementis afinancial statement that measures a company’s financial performance over a specific period (

STATEMENT OF CASH FLOW: Statement of cash flow is a financial statement that shows changes in the balance sheet (financial position) accounts and income affect cash and cash equivalents and breaks the analysis down to operating, investing and financing activities(Bodie, Zane; Alex Kane and Alan J. 2004).


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study




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