The Effect of the Adoption of International Financial Reporting Standards (IFRSs) on Financial Performance of Quoted Oil and Gas Companies in Nigeria

This study examines the effect of the adoption of International Financial Reporting Standards (IFRSs) adoption on the financial performance of quoted oil and gas companies in Nigeria. The study evaluates the effect of IFRS adoption on earnings per share (EPS), book value per share (BVPS) and cash flow per share (CFPS)using an ex-post facto research design, the study analyzed secondary data from audited annual reports of 7 oil and gas companies listed on the Nigerian Stock Exchange (NGX). The results show a significant increase in EPS (t = 3.05, p = 0.005) and profit after tax (t = 1.21, p = 0.0238) post-IFRS adoption. The mean difference in EPS is 166, with a 95% confidence interval of 54.5 to 277. However, no significant difference was found in BVPS (t = 1.43, p = 0.163). The results for CFPS were mixed, with the t-test indicating a significant difference (t = 1.79, p = 0.003), but the Wilcoxon test not supporting this finding (p = 0.253). The study's findings have implications for policymakers, regulators and investors. The study contributes to the existing literature on the impact of IFRS adoption on financial performance. The findings suggest that IFRS adoption leads to increased profitability and EPS. The study highlights the need for further research on the impact of IFRS adoption on other financial performance metrics.