International Financial Reporting Standards And Financial Statement Transparency: Evidence From Emerging Economies Like Nigeria
Jonah Ngbomowa Moses PhD
Department of Accounting, Faculty of Administration and Management, Rivers State University, Nkpolu Port Harcourt Rivers State, Nigeria.
Court Eunice Ralph PhD
Department of Accounting, Faculty of Administration and Management, Rivers State University, Nkpolu Port Harcourt Rivers State, Nigeria.
Amadi Ngozi Eleba PhD
Department of Accounting, Faculty of Administration and Management, Rivers State University, Nkpolu Port Harcourt Rivers State, Nigeria.
Keywords: IFRS Adoption, Financial Statement Transparency, Compliance, Disclosure, Emerging Economies
Abstract
This study examines the impact of International Financial Reporting Standards (IFRS) adoption on the transparency of financial statements in emerging economies, with specific reference to Nigeria. The motivation stems from the need to understand how global accounting convergence initiatives affect the clarity, accessibility, and usefulness of corporate financial disclosures in developing contexts. The study employed a descriptive and correlational survey design, using structured questionnaires administered to accounting professionals in 100 listed firms across various sectors of the Nigerian economy. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis with SPSS (Version 26). The independent variable, IFRS adoption, was assessed through three dimensions: compliance with disclosure requirements, quality of financial reporting, and training and implementation capacity. Financial statement transparency, the dependent variable, was measured using clarity and understandability of financial information, and timeliness and accessibility of reports. Findings revealed that IFRS adoption has a statistically significant and positive influence on financial statement transparency in Nigeria. Compliance with IFRS standards and improvements in reporting quality had the strongest effects, while training and implementation capacity also contributed meaningfully. The study concludes that effective IFRS implementation enhances the reliability and comparability of financial reports, ultimately boosting investor confidence and market credibility. It recommends that regulatory bodies enforce full compliance, support continuous training, and enhance public access to financial disclosures. The study contributes to literature by empirically linking IFRS dimensions to specific indicators of financial transparency within the Nigerian corporate reporting environment.