Impact of IFRS Adoption on Transparency, Comparability and Consistency of Bank Financial Reporting

Abstract

The adoption of International Financial Reporting Standards (IFRS) has been widely promoted as a means of enhancing the quality of financial reporting across countries and industries, particularly in the banking sector where transparency and credibility are critical. This study examines the impact of IFRS adoption on the transparency, comparability, and consistency of bank financial reporting. Using a combination of empirical analysis and review of financial statements from selected banks before and after IFRS implementation, the research evaluates whether IFRS has improved the clarity, disclosure quality, and uniformity of financial reports. The findings suggest that IFRS adoption significantly enhances transparency by increasing the level of disclosures and reducing information asymmetry between banks and stakeholders. In terms of comparability, the use of a common global reporting framework allows for easier cross border and inter-bank financial analysis. Furthermore, IFRS promotes consistency in the preparation and presentation of financial statements over time, although challenges such as implementation costs, professional judgment, and regulatory differences may limit full uniformity. The study concludes that while IFRS has substantially improved financial reporting quality in the banking sector, continuous regulatory support and professional training are necessary to maximize its benefits. These findings are relevant to policymakers, financial institutions, investors, and accounting professionals seeking to strengthen financial reporting practices.