Effect of IFRS 13 Adoption on the Value Relevance of Accounting Information of Listed Deposit Money Banks in Nigeria

Abstract

Fair value is generally considered to be one of the most controversial areas in accounting. This study examined the effect of IFRS 13 adoption on the value relevance of accounting information of listed deposit money banks in Nigeria. The sample comprised of ten (10) listed deposit money banks in Nigeria for a period of seven (7) years (2012-2018). Secondary data were obtained from the annual reports and accounts of the listed deposit money banks. The explanatory variable of the study is IFRS 13 adoption and the explained variable is share price. Descriptive statistics, correlation analysis and multiple panel regression analysis were employed for analysis. Results from the regression analysis revealed that fair value hierarchy has a positive and significant effect on the value relevance of accounting information of deposit money banks. Based on the findings, it is recommended that investors should rely on information prepared using the fair value hierarchy approach in their decision making.