Adoption of International Financial Reporting Standards and Financial Performance of Listed Manufacturing Firms in Nigeria


  • Odunsi, Oluwasegun Temitayo
  • Ibikunle, Lateef Oyeleke



International financial reporting standards, Financial reporting standards Nigeria, Financial Performance, Listed manufacturing firms


This study reviewed the literature on the effect of the International Financial Reporting Standards (IFRS) adoption on financial performance of listed manufacturing firms in Nigeria. Forty-five journal articles on the subject published between 2012 and 2021 were analyzed. The study employed a narrative literature review. The review focused on determining whether there wre any significant differences between the financial performance measurements of listed manufacturing firms operating in Nigeria that were prepared using IFRS-compliant financial statements and local Generally Accepted Accounting Principles (GAAP). Second, to determine whether financial performance indicators developed using IFRS-compliant financial statements exhibit superior performance than those developed using local GAAP. The Studies reviewed employed secondary data, which were sourced from the annual reports of companies listed on the Nigerian Exchange Group, and the data were analyzed using panel regression analysis. According to the analysis of the literature, IFRS financial ratios are more accurate performance indicators than local GAAP financial ratios. Further investigation indicated that there were no notable discrepancies between the financial performance indicators (financial ratios) reported by listed manufacturing firms operating in Nigeria under local GAAP and IFRS-compliant financial statements. The study concluded that a company's financial performance (return on capital employed) improves in direct proportion to how closely it complies with IFRS disclosure guidelines. The study recommended that to sustain the positive effects of compulsory and voluntary financial performance disclosure, manufacturing firms should be concerned with the disclosure of important information at every point in time.

Author Biographies

Odunsi, Oluwasegun Temitayo

1Department of Accounting, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria

Ibikunle, Lateef Oyeleke

Federal College of Education, Oyo, Oyo State, Nigeria