International Financial Reporting Standard Adoption and Value Relevance of Accounting Information in Nigeria

Uwalomwa Uwuigbe, Olubukola Ranti Uwuigbe, Moyosore Esther Durodola, Jimoh Jafaru and Rehimetu Jimoh
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Uwalomwa Uwuigbe: Department of Accounting, Covenant University, Ota-Ogun State, Nigeria,
Olubukola Ranti Uwuigbe: Department of Accounting, Covenant University, Ota-Ogun State, Nigeria
Moyosore Esther Durodola: Department of Accounting, Covenant University, Ota-Ogun State, Nigeria,
Jimoh Jafaru: Department of Accountancy, Auchi Polytechnic, Auchi, Edo State, Nigeria
Rehimetu Jimoh: Department of Office Technology, School of Information Communication Technology, Auchi Polytechnic, Auchi, Edo State, Nigeria.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 3, 1-8

Abstract: This paper examined the impact of International Financial Reporting Standard (IFRS) adoption on the value relevance of accounting information in Nigeria. In achieving the objectives of this research, the fact book and the annual reports for the period 2010-2013 were used. Also, using the judgmental sampling technic a total of 10 companies were selected from a population of 26 listed companies in the consumer goods industry listed on the floor of the Nigerian Stock Exchange (NSE), The Ohlson model was adopted to develop six models for the course of the paper. Using ordinary least square regression, the study found out that; earnings per share (EPS) and book value of equity per share are accounting variables that jointly explains share price. The study observed that with the introduction and adoption of IFRS, there has been is an improvement in the value relevance of accounting information. The study also observed that EPS exhibits a stronger explanatory power both in pre and post IFRS adoption periods. The paper therefore concludes that though IFRS has helped in the relevance of accounting information; there are still room for earnings management.

Keywords: Value Relevance; Accounting Information; Explanatory Power; International Financial Reporting Standard; Earnings Per Share (search for similar items in EconPapers)
JEL-codes: G21 M41 (search for similar items in EconPapers)
Date: 2017
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