Impact of the IFRS Adoption on Stock Market Movement in Nigerian Corporate Organization

Abstract

Lots of challenges are being faced with the adoption and implementation of International Financial Accounting Reporting Standards, despite this, the adoption is essential to the growth of our stock market. In view of this, this paper attempts to assess the impact of International Financial Reporting Standard on stock market movement and to extent at which it can improve the position of corporate organization in Nigerian capital market. Descriptive design was adopted using the stock price and shares traded during two years periods. SPSS Version 7.0 were also used to obtain the mean, variance and Std. Deviation. It observed that the adoption of IFRS in Nigeria will enhance credible financial statements that will also provide a basis for the strength of a corporate entity in capital market hence is a welcome development in Nigerian economy. This paper therefore recommends that Government should empower significantly the financial reporting council of Nigeria (FRCN) to create transitional programmes and training to smoothen the adoption and compliance with IFRS.