ABSTRACT

As the forces ofglobalization prompt more and more countries to open their doors to foreign investment and as businesses expand across borders, this has led to recognition ofthe benefits of having a commonly understood financial reporting framework supported by strong global accepted accounting standards. The circumstances that necessitated this recognition arose out of the need for reliability, in respect offinancial information being disclosed in the published financial statement offinancial information being disclosed in the publishedfinancial statement ofvarious enterprises in various countries. The adoption ofIFRS has therefore become an issue ofglobal relevance. The research project investigated the effect ofIFRS on Financial Reporting Quality in Nigeria. The problem has always been the needfor accounting standards that would cut across borders. Thus, boosting the reliability oflocal accounting information as well as the confidence oflocalfinancial information users andforeign investors alike. Thus, during the course ofthis research, three specific objectives wereformed with include thefollowing to examine ifthe adoption ofIFRS will enhance efficiency offinancial reporting in PZ Cussons PLC, to examine the relationship between accounting standards harmonization through adoption and use ofIFRS andfinancialreporting quality in Nigeria and to compare the effect ofpre andpost IFRS adoption on financial reporting quality in PZ Cussons Pic. Primary data source was adopted by the researcher through the distribution of a well drafted 98 questionnaires upon which 95 were completelyfilledand returned. Simple regression statistical technique was used in the analysis of the hypotheses. Sequel to the analysis, it was revealed that the adoption ofIFRS has a significant effect onfinancial reporting quality in PZ Cusson PLC, that accounting standards harmonization has a significant effect on financial reporting quality in PZ Cusson PLC and that there is a significant effect ofpre andpost IFRS adoption onfinancial reporting quality in PZ Cusson PLC. The research ended with thefollowing recommendations that top management, external auditors and regulators being the keyplayers in standards, need to work together to tighten compliance so that impact ofIFRS could be effectivelyfelt more and that government and regulatory agencies should ensure that there is availability of training facilities and material for professional accountants in PZ Cusson on the concept ofIFRS and effectivefinancial reporting quality.