Abstract:
This study sought to establish the impact of accounting standards International Financial
Reporting Standards (IFRS) in Kenya has been associated with financial reporting
performance for listed companies. The International Accounting Standards Board (lASB),
in its objectives and preamble, supposes that the beneficial impacts from accounting
standards IFRS include transparency, accounting quality and reduced cost of capital.
Based on these assumptions, this study applied accounting quality measures; earnings
management, timely loss recognition and value relevance to find out whether the
accounting standards IFRS has led to improvements in accounting quality in commercial
banks listed in Kenya. The methodology was based on prior literature definition of metrics
of accounting quality mainly earnings management, timely loss recognition and value
relevance. The study differs from the previous ones by overcoming difficulties in
controlling for confounding factors faced in previous studies which could have led to less
reliable results.
