ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARD AND VALUE RELEVANCE OF ACCOUNTING INFORMATION IN NIGERIA

This study examined the adoption of international financial reporting standard and value relevance of accounting information in Nigeria. The specific objectives were to determine the effect of PRE-IFRS adoption on the earnings per share of selected companies in Nigeria and to ascertain the effect of POST-IFRS adoption on the earnings per share of selected companies in Nigeria. The study adopted an ex-post facto research design. The population with consists of all listed companies in Nigeria. The sample size for the study consisted of Dangote Sugar Plc, Cussons Nigeria Plc, Nigeria Breweries Plc, and Nestle Nigeria Plc. Data were sourced from the financial statements of Dangote Sugar Plc, Cussons Nigeria Plc, Nigeria Breweries Plc, and Nestle Nigeria Plc. The study was analyzed using panel regression. The findings of this study revealed that PRE-IFRS adoption has a positive and insignificant effect on the earnings per share of selected companies in Nigeria, whereas POST-IFRS adoption has a positive and insignificant effect on the earnings per share of selected companies in Nigeria. In conclusion, the adoption of IFRS tends to enhance the value relevance of accounting information, but its success depends on contextual factors and the commitment of all stakeholders involved in the financial reporting ecosystem of a particular company. The study recommended that companies should ensure that a timely and full implementation of IFRS is implemented to encourage and unlock the actual financial performance benefits accompanied by adopting IFRS in the country.