Impact of International Financial Reporting Standards on Earnings Management

The adoption of International Financial Reporting Standards (IFRS) has been a significant development in the accounting landscape. This study examines the impact of IFRS on earnings management, a practice where companies manipulate financial reports to influence stakeholders’ perceptions. Using a sample of listed companies, this research compares earnings management practices pre- and post-IFRS adoption. The results suggest that IFRS adoption leads to a significant reduction in earnings management, as companies are required to provide more transparent and comparable financial information. However, the study also finds that companies may still engage in earnings management through alternative methods. The findings of this study reveal that IFRS adoption has helped to create consistent and comparable financial reports, removing barriers created by varying national standards. Another finding of the study revealed that there is interactive effect of profitability, leverage and firm size on the earning management of the selected Nigeria listed companies. Profitability, leverage and firm size are positive, high and significant determinant of earning management. The researcher recommends that there should be timely adoption of IFRS by all Nigeria companies. All the following; determinants such as profitability, leverage and firm size should be considered in earning management by Nigeria companies.