Comparative Value Relevance between International Financial Reporting Standards and Nigerian Statement of Accounting Standards

This study compared the value relevance of accounting information under IFRS and under NGAAP. The study used an innovative variant of ex-post facto design called the “same firm-year” design. The study sampled 81 Nigerian quoted companies; and compared value relevance under the two accounting standard regimes using Fisher F-test. The study found that the value relevance of accounting under IFRS is higher than that under NGAAP. Based on the findings, the study concluded that adoption of IFRS in Nigeria has led to increase in value relevance of accounting information hence financial reporting quality. The study recommends that financial statement users’ especially investors should have faith in the accounting information presented under IFRS in making economic decisions. The study also recommends that preparers and regulatory authorities should embrace IFRS and perfect their knowledge of it. Finally, it is recommended that organisations in the accounting education supply chain should incorporate IFRS in their study programmes. Keywords: IFRS Adoption, NGAAP, Value Relevance