The impact of Compliance with IFRS 10 (Consolidated Financial Statement) on Financial Reporting Quality of listed Deposit Money Banks in Nigeria

Abstract

The purpose of this study is to investigate the impact of IFRS 10 (consolidated financial statement) compliance on the financial reporting quality of listed deposit money banks in Nigeria. The research employed an ex-post-facto design. Empirical analysis was conducted on 12 listed deposit money banks in Nigeria over the period of 2012-2016. The proxy of the dependent variable of the study which is firm financial reporting quality is Accrual Basis while the independent variable of the study is IFRS 10 compliance. Using ordinary least square analysis, the study observed that IFRS 10 compliance has a positive but insignificant impact on the financial reporting quality of deposit money banks (DMBs). The study further revealed that there is strong compliance with IFRS 10 by DMBs. The paper recommends that the regulatory agencies should take measures aimed at increasing strict compliance with IFRS 10 (consolidated financial statement) by deposit money banks as such will have a positive impact on financial reporting quality. Also, compliance with IFRS 10 should be strictly imposed on all DMBs with the aim of improving the financial reporting quality of DMBs as evidence by the findings of this study.