www.theinternationaljournal.org > RJSSM: Volume: 03, Number: 11, March-2014 Page 1 The Adoption of International Financial Reporting Standards (IFRS)—Issues, Challenges and Opportunities Fasoranti M. M. (Ph.D) 1 Department of Economics, Adekunle Ajasin University, Akungba-Akoko, Ondo State, Nigeria. email: modupefasoranti@gmail.com Adelakun, Ojo Johnson and 2 Department of Economics, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria. email: joadelakun@yahoo.co.uk Joshua, Olusola Olalekan 3 Department of management and accounting Obafemi Awolowo University, Ile-Ife, Nigeria. email: solajoshua@yahoo.com ABSTRACT The study looked at the issues of IFRS’s adoption in Nigeria, and its challenges. It also examined the attendant benefits of IFRS in term of high quality, transparent, reliable and comparable financial statement and how it will be of help to Nigeria financial reporting practice. The sample size which comprises of preparers and users of financial statements from reputable quoted public companies and big four accounting firms in Nigeria (i.e KPMG, Akintola William Deloitte, Pricewaterhousecoopers, and Enrst and Young) was drawn from the entire population which comprises of public companies, financial institutions, players in the capital market, government, e.t.c. . Lagos State, the south-west Nigeria, was also picked as the sampling area because this state has the highest concentration of the study’s sample size. Descriptive Statistics were used to analyse data collected from both primary and secondary sources. 100 questionnaires containing 28 relevant questions relating to IFRS adoption in Nigeria, its benefits and challenges, were used to collect data from respondents from both users and preparers of financial statement perspectives. However, after the analysis of the data that was empirically gathered, the findings of this study revealed that full disclosure requirements of IFRS and its emphasis on fair value accounting for the measurement of some items of financial statements (e.g item of property, plant and equipments) will lead to high quality, transparent, and reliable financial statements. The findings also concluded that elimination of reporting language barriers will encourage cross border investment and thus more inflows of foreign direct investments. KEYWORDS: Fear value, Full disclosure requirement, Financial Statements Comparability, Cross border Investments 1.0 INTRODUCTION International Financial Reporting Standards (IFRSs) are set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standards for the preparation of public company’s financial statements. Zakari, (2010). Oyedele, (2011) also described International Financial Reporting Standards (IFRSs) as global Generally Accepted Accounting Principles (GAAPs) seeking to unify accounting and financial reporting world-wide. However, from the above definitions, it could be seen clearly that IFRSs are set of accounting pronouncements and rules developed by International Accounting Standards Board (IASB), which are required to be complied with globally by preparer of financial statements so that financial statements prepared in any country of the world could gain global acceptability and comparability. On April 1st, 2001, International Accounting Standards Board (IASB) was founded as a successor to the International Accounting Standards Committee (IASC). The IASB describes its rules under the new labeled IFRSs, though it continues to recognize (accept as legitimate) the prior rules i.e International Accounting Standards (IAS) issued by the old Standards setter (IASC). The IASB began operations in the same year 2001 when it was founded to succeed the old IASC. The Board is