IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARD ON THE QUALITY OF FINANCIAL STATEMENT (A CASE STUDY OF FIRST BANK PLC)

International financial reporting standard IFRS have become the new dominant set of accounting standard, however the transition of the new standard was fairly disruptive for user of financial statement. Comparability and trend analysis was impaired as the difference between IFRS and local General Accepted Accounting Principle, GAAP, Impact figures presented in financial statement and leads to variances in financial ratio computed under the two regimes. The study examines the effect of IFRS adoption in Nigeria of financial statement figures and key financial ratio of Nigeria banks that adopted IFRS. The study likewise seeks to identify the sources of differences in financial reporting experienced by banks due to the changes in regime. Secondary sources of data were used Chi-square analysis was used to test the hypothesis formulated. The findings reveal that there is a significant effect in the adoption of IFRS on the financial statement of banks in Nigeria, Based on this findings it was recommended that those involved in the analysis of financial statement are advised to accord attention to the trend analysis when comparing pre-adoption data under N-GAAP with post adoption data in IFRS the comparison of financial ratio under both NGAAP and IFRS for the comparative year prior to IFRS adoption may be seen as a prudent first step prior to undertaken a trend analysis of a particular company. It may be prudent to rely on cash flow to avoid the subjectivity inherent to accounting adjustment. Been aware of the higher volatility of accounting figure under IFRS understanding the main category of adjustment affecting accounting figure and ratio in IFRS may likely be important.