IFRS Implementation in Nigeria: Book Value, Profitability, and Value Relevance of Pre and Post Financial Information of Banks

The conception of IFRS is one of the most challenging changes in the framework of accounting globally. IFRS has been an issue of discourse and argument among scholars over decades most especially; on historical cost accounting and fair value measurement. This study examined the impact of IFRS adoption on the profitability of Nigeria Banks in pre and post adoption eras. To determine the overall significance, from the analysis, p-value was 0.409 which is greater than 0.05. Additionally, there is an increase in the mean values from 4.86866792 to 6.581167 and SD values from 3.3621178 to 5.8163482 over the period. At a degree of freedom of 2 and at 5% level of significance, BVPS has positive impact on share price and significant at 5% with correlation coefficient of 0.871, z-value of 0.758 and p- value of 0.000. This implies that for a 1% increase in BVPS, there is a consequent 87% increase in share price holding all other variables constant in pre IFRS adoption era. For post IFRS adoption period, the result shows that BVPS has positive impact on share price and significant at 5% with correlation coefficient of 0.592, z-value of 0.350 and p- value of 0.006. This implies that for every 1% increase in BVPS, there is a consequent 59% increase in share price holding all other variables constant. This reveals that IFRS based BVPS has positive but less significant effect on share prices as compared to pre-IFRS adoption therefore, not value relevance. Conclusively, post IFRS financial information has a weak value relevance. However, the elements that made up financial information are not value relevant in post IFRS adoption thereby, giving a low cumulative relationship to share price. Based on the above, the study conclude that, IFRS adoption does not enhance value relevance of financial information in Nigerian banking sector.