EFFECT OF MANDATORY IFRS ADOPTION ON ACCRUAL-BASED EARNINGS MANAGEMENT OF DEPOSIT MONEY BANKS IN NIGERIA

Dagwom Yohanna Dang, Zubairu D. Abdullahi, Jacob Ame

Abstract


Accrual-based earnings management quality of financial reporting can be influenced by change in financial reporting framework. This study examined the effect of mandatory IFRS adoption on accrual-based earnings management quality of financial reporting of Deposit Money Banks (DMBs) in Nigeria using difference-in-difference (D-in-D) design.Panel data regression analysis based on the D-in-D model is used in analysing the data collected fromsecondary sources. The findings of this study are that based on the difference-in-differences approachthere is no significant effect of mandatory IFRS adoption on accrual-based earnings managementquality of financial reporting of DMBs in Nigeria.The study recommended that regulatory authorities, such as Central Bank of Nigeria (CBN) and Financial Reporting Council of Nigeria (FRC) should de-emphasize the use of historical cost accounting and emphasize on the application of fair value accounting as required by IFRS 13.

Keywords


Mandatory IFRS Adoption, Accrual-based Earnings Management, Quality of Financial Reporting, Difference-in-differences

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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