AN ANALYSIS ON THE IMPACT OF ACCOUNTING STANDARDS ON FINANCIAL REPORTING

This study examined the impact of accounting standards on financial reporting using Cadbury Nigeria Plc. as a case study. The research specifically focused on how the adoption of International Financial Reporting Standards (IFRS) has influenced revenue recognition, quality of financial reporting, and inventory valuation within the company. The study adopted a descriptive research design and utilized both primary and secondary sources of data. Primary data were collected through questionnaires distributed to staff members in the finance and accounting-related departments of Cadbury Nigeria Plc., while secondary data were sourced from annual reports, academic journals, and relevant publications. A total of fifty-five (55) questionnaires were distributed and successfully retrieved, representing a 100% response rate. Data collected were analyzed using descriptive statistics and regression analysis with the aid of Statistical Package for Social Sciences (SPSS). The findings revealed that IFRS adoption has a significant positive impact on revenue recognition, quality of financial reporting, and inventory valuation at Cadbury Nigeria Plc. The regression results showed that IFRS adoption explained 83.7% variation in revenue recognition, 93.8% variation in quality of financial reporting, and 95.3% variation in inventory valuation. The study concluded that the adoption of IFRS has improved financial reporting practices by enhancing transparency, comparability, reliability, and consistency in financial statements. Based on the findings, the study recommended that regulatory authorities such as the Financial Reporting Council of Nigeria (FRCN), Securities and Exchange Commission (SEC), and the Central Bank of Nigeria (CBN) should intensify monitoring and enforcement of IFRS compliance. The study also recommended continuous training and awareness programs for accountants, auditors, and financial managers on IFRS implementation and application. The study contributes to existing literature on accounting standards and financial reporting, particularly within the Nigerian manufacturing sector.