ABSTRACT

The study examines the effect of IFRS adoption on the financial performance of manufacturing firms in Nigeria. Data were collected from the financial reports of ten manufacturing firms in Nigeria from 2007 – 2016. The research design adopted was ex post facto. Data were analyzed using descriptive analysis to ascertain the mean, standard deviation and skewness of the variables. Independent samples T- test statistics was used to analyze significant difference between the variables in the pre and post IFRS adoption.  The findings revealed that IFRS adoption has no significant effect on some profitability ratios, while some indicated significant effect.  No significant difference was observed in the profit margin, liquidity and leverage when compared over the period while Efficiency and Dividend payout indicated a significant difference.The findings showed that the t-test statistic for profit margin, liquidity and leverage are -0.789, .262, and .133 respectively which is not statistically significant at an acceptable bound of 5%. Also IFRS adoption significantly affects the firm’s efficiency and dividend payout ratios with a t- test value of .042 and .023 respectively which is within the bound of 5% level of statistical significance. The study therefore recommends that manufacturing firms should support the Nigeria’s adoption of IFRS, to comply strictly and follow the rudiments of IFRS to enable them benefit from IFRS adoption just as the developed countries are benefitting. It also point out that, manufacturing firms should embark on re- training programs for accountants