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ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS AND ITS IMPLICATION ON BANK PERFORMANCE IN NIGERIA: A COMPARATIVE APPROACH

Achugamonu, Bede U. and Olokoyo, F. O. and Babajide, A. A and Owalabi, Folashade and Adetula, D. T. (2016) ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS AND ITS IMPLICATION ON BANK PERFORMANCE IN NIGERIA: A COMPARATIVE APPROACH. Journal of Internet Banking and Commerce, 21 (S5).

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Abstract

This study is a comparative analysis of the impact of adopting International Financial Reporting Standard (IFRS) by deposit money banks in Nigeria and its effect on their performance. Financial ratios computed from IFRS compliant financial statement and Nigerian GAAP based financial statements were compared using fourteen (14) banks for the period between 2010 and 2013. Descriptive statistics and econometric models were used to explain the variability of the sample data around the mean; and the significance of the variables. The findings from the result revealed that the difference arising from the computation between the pair of ratios were insignificant at 5% level. The study therefore concluded that disclosing IFRS compliant set of financial statements was not the reason for a higher profit achieved by the sampled banks. Rather, such performance could have been triggered by other factors like the recapitalization and cross border listing of the affected DMBs. The study recommended among other issues that cross boarder listing of stocks of banks should be closely monitored by regulators to avert imminent abuse. It also emphasized on the need to eliminate differences and harmonize both standards to make it more comparable

Item Type: Article
Uncontrolled Keywords: IFRS; Bank Performance; Nigerian GAAP; Convergence; Financial
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 20 Jan 2017 12:48
Last Modified: 20 Jun 2017 12:35
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/7611

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