Effects of International Financial Reporting Standards (IFRS) on Financial Statements Comparability of Companies

Document Type : Original Article


Department of Accountancy, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria


The study examines whether the mandatory introduction of International Financial Reporting Standards (IFRS) enhances financial statements comparability of companies listed on the Nigerian stock exchange. The study specifically investigates the relationship between SAS and IFRS introduction based on key performance indicators of listed companies in Nigeria in terms of liquidity, profitability, gearing, reported earnings and market value. A survey study research method was adopted where 20 listed firms’ published financial reports for 2011 under SAS was compared with 2012under IFRS. Mean, standard deviation and Pearson Correlation Statistic methods were used for the analysis. The findings revealed that the introduction of IFRS in Nigeria enhanced credible and qualitative financial statements that would engender economic growth and development. The study therefore recommends that government should empower significantly the financial reporting council of Nigeria (FRCN) to monitor and enforce standards and training to smoothen the introduction of IFRS.


Volume 01, Issue 01
March 2017
Pages 12-16
  • Receive Date: 12 December 2016
  • Revise Date: 20 December 2016
  • Accept Date: 06 January 2017
  • First Publish Date: 01 March 2017