Evaluating the effect of IFRS adoption on the financial position of commercial banks in Nigeria

Abstract

This study is designed to evaluate the effect of the adoption of the International Financial Reporting Standards (IFRS) on the financial position of banks in Nigeria. In order to achieve this, we adopted a quantitative research design that primarily focused on the construction of quantitative data by obtaining the required information on Total Assets, Liabilities and Equities needed for the purpose of data analysis from the annual reports and accounts of three sampled banks in Nigeria. Analysis was based on periods before and after IFRS adoption and was done using the Ordinary Least Square technique. Findings from this study show among others that IFRS adoption significantly and positively affected the financial position of the sample banks in Nigeria. On the basis of our findings, we recommend that all organizations, as a matter of urgency, should be made by law to comply with the provisions of IFRS, and the continuous training and retraining of accountants, preparers of financial statements and all stakeholders must remain a re-occurring decimal generally in corporate entities, and in banks (in particular) in Nigeria.