ABSTRACT 

This study examines the implementation level of International Financial Reporting Standards (IFRSs) by listed entities in different sectors of the Nigerian economy and compares financial statement figures obtained using Nigerian Statement of Accounting Standards with their IFRS equivalents. It also evaluates the effect of IFRS implementation on financial performance using firm size and age as moderating variables, and provides value relevance assessment of accounting quality under the global financial reporting standard. The study covers a period of seven years (2012 to 2018) and adopted expost facto research design. A sample of twenty-one (21) companies listed on the Nigerian Stock Exchange were purposively selected across ten economic sectors based on specified criteria. An IFRS Implementation Index was constructed to serve as proxy for IFRS Adoption. Paired samples of six financial statement figures under the two financial reporting treatments (NGAAP-based and IFRS-restated) were obtained and compared for the year preceding the year of adoption of the new standard. Also, financial performance data on Return on Assets, Earnings Per Share, and Price Earnings Ratio as well as total assets and firm age were extracted for the period of IFRS adoption. The Annual Stock Returns model was used to measure accounting quality of earnings and book value of equities. Descriptive statistics, paired samples t-test, correlation, balanced panel least squares and moderated multiple regression techniques were used to analyze the data. Results reveal that the level of IFRS implementation widely varies across the ten sectors investigated, and that differences between the means of NGAAP-based financial statement figures and the IFRS-restated equivalents for ROA and NI are significant. Results further indicate that IFRS implementation has significant effects on ROA and EPS, while the effect on PER is not significant.  The interaction effects of firm size and age on the relationship between IFRS adoption and the three financial performance measures are not statistically significant. Results also reveal that the transition from NGAAP to IFRS has a significant positive trade-off on accounting quality of earnings and book value of equities of listed entities in Nigeria. The study concludes that the adoption of IFRS improves the profitability and accounting quality of listed firms in Nigeria, and therefore makes recommendations for creating regular capacity building opportunities, promotion of research efforts to address emerging issues in IFRSs, provision of compliance incentives for entities, and strengthening monitoring and supervisory controls using appropriate non-compliance deterrent measures to improve and sustain high compliance to IFRSs and enhance the profitability and quality of accounting information of listed entities in Nigeria.