CORPORATE CONSEQUENCES: ASSESSING THE IMPACT OF IFRS ON FINANCIAL HEALTH AND TAX OBLIGATIONS IN NIGERIA

Abstract

This study evaluates the influence of mandatory International Financial Reporting Standards (IFRS) adoption on the corporate profitability and taxation of five selected companies listed on the Nigerian Stock Exchange. The study period covered 2009-2011 and the post-IFRS adoption period of 2013-2020. The study employs descriptive statistics and paired sample t-tests to analyze information from consumer goods, industrial goods, and banking sectors. The results indicate that mandatory IFRS adoption would have a significant impact on the profitability of listed firms in Nigeria. However, its impact on taxation was found to be insignificant. Significantly, there were no differences in the effects of IFRS on profitability and taxation across the selected listed companies in the three sectors. The research findings indicate that corporate managers should continue to comply with IFRS because it contributes to profitability. This study adds to the paucity of empirical research on the effect of mandatory IFRS adoption on corporate profitability and taxation in Nigeria