ABSTRACT

The purpose of the study was to examine the impact of international financial reporting accounting standards adoption on the corporate performance of selected manufacturing firms in Nigeria. The specific objectives were to determine the impact of the adoption of International Financial Reporting Accounting Standard on the Returns of Assets (ROA) of selected manufacturing firms in Nigeria and determine the impact of adoption of International Financial Reporting Accounting Standard on the Returns on Equity (ROE) of some selected manufacturing firms in Nigeria. The study adopted ex post facto and survey research design. The data were collected using secondary data. The study used regression analytical technique in the analysis of data. Result findings showed that the introduction of IFRS in the Nigerian economy as an accounting reporting standard and its adoption by companies has led to improved quality financial statements; and has led decrease in the values for returns on assets in these manufacturing companies. IFRS implementation is indirectly associated with the changes in returns on equity of selected firms judging from the beta coefficient of -14.68 approximately. Also the t-statistics of the coefficient which is -2.40 approximately is statistically significant at 5% implying that the influence of IFRS implementation on the returns on equity of these selected firms is considerable enough to warrant statistical conclusion. The study concluded that the adoption of IFRS in the Nigerian manufacturing sector and other sectors of the Nigerian economy has affected the quality of financial statements significantly. The study further recommended that firms of all sizes should endeavor to voluntarily study, introduce and adopt all the requirements of the International Accounting Standards Board (IASB) as contained in the various issues of IFRSs as it has been established in this study that items of the financial statements are better reported when these standards are adhered to and the government through its oversight body.