IFRS adoption, corporate governance and faithful representation of financial reporting quality in Nigeria’s development banks

Abstract

Development banks were designed to achieve the government's economic priorities that were not adequately addressed by the banking industry. Studies, however, show that the activities of some development banks in Nigeria have not been as impacting as expected for different reasons, which include lack of access to finance. This study investigated the impact of International Financial Reporting Standards (IFRS) adoption and corporate governance on the faithful representation of the financial reporting quality in Nigeria's development banks. The study adopted a survey research design. The study adopted a convenience sampling technique. The validity and reliability test of the instrument was conducted on the variables. The reliability test was analyzed using Cronbach's alpha test, and all variables were greater than 0.7, indicating a good construct. The study used descriptive and inferential (multiple linear regression) data analysis methods. The study's findings revealed that IFRS adoption and Corporate governance significantly affect the faithful representation of financial reporting of Nigeria's Development Banks. The study concluded that IFRS adoption and corporate governance significantly affect the faithful representation of the financial reporting quality in Nigeria's development banks. The paper recommended that the management of the development banks should endeavor to take advantage of the opportunities presented by the IFRS adoption to improve their reporting to promote uniformity and transparency.

A bibliometric review of IFRS adoption and compliance research in Africa

“…The study revealed a positive association between IFRS and increased audit fees among early adopters, while the impact on late adopters was found to be weak. Ajibade et al (2022) also discovered the significant influence of IFRS adoption and corporate governance on the faithful representation of financial reporting among Nigerian development banks. Due to the unique institutional setting in every African country, coupled with distinct organizational structures and governance procedures, the adoption of IFRS is influenced by firm characteristics, the presence of professional and regulatory accounting bodies and external audit affiliations.…”

“…The study revealed a positive association between IFRS and increased audit fees among early adopters, while the impact on late adopters was found to be weak. Ajibade et al. (2022) also discovered the significant influence of IFRS adoption and corporate governance on the faithful representation of financial reporting among Nigerian development banks.…”

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

“…This includes insights into valuation methods, expected performance, and potential risks associated with the instruments. Through this provision, IFRS 17 ensures that investors and participants have access to accurate information when making decisions (Ajibade et al, 2022). Therefore, based on the aforementioned discussion, it can be concluded that IFRS 17 facilitates transparency and accuracy in financial reporting, allowing investors and participants to make informed decisions.…”