EFFECT OF MANDATORY ADOPTION OF IFRS ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA (PERIOD OF 2015-2016)
Abstract
This studv on Effect of Mandatory Adoption of IFRS on the Financial Performance of Deposit Money Banks in Nigeria was carried out to examine the effect of IFRS on financial performance reporting Of Deposit Money Banks in Nigeria for the period of 2015-2022. The specific objectives include; to examine the effect of IFRS adoption on the profitability of Deposit Money Banks in Nigeria, to investigate the effect of IFRS adoption on liquidity of Deposit Money Banks in and to study the effect of IFRS adoption on financial leverage of Deposit Money Banks in Nigeria. Hypothesis were formulated in line with the specific objectives. The studv adopted expost facto design because secondary data were used. The population for the study comprised twenty-one (21) deposit money banks quoted on the stock exchange as at 2016 . from where sample size of six (6) deposit money banks were drawn using judgmental sampling techniques. The hypothesis was tested using regression analysis. The findings of the study revealed that mandatory adoption IFRS does not significantly impact on the profitability ratios of Deposit Money Banks in Nigeria, mandatory adoption IFRS does not significantly impact on the liquidity ratios of Deposit Money Banks in Nigeria and mandatory adoption IFRS does not significantly impact on the leverage ratios of Deposit Money Banks in Nigeria.
Consequenlly, this research concludes that IFRS adoption has positively impacted the overall financial performance and position of banks. Based on the findings of the study it was recommended that; government and the regulators should ensure that there is availability of training facilities and materialsfor professional accountants on the concept of IFRS and issues relating to its implementation and conversion, compliance with IFRS timetable should be mandatory and failure should be marched with appropriate sanctions and professional accounting bodies in Nigeria should make IFRS training a part ofMCPE at a reduce cost.
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