Abstract: “Purpose: We investigate whether compliance with International Financial Reporting Standards (IFRS) is associated with earnings reporting quality of financial firms operating in Ghana. Our paper is based on the premise that complying with International Financial Reporting Standards reflects the combined effects of the financial reporting framework of applying the standards, their interpretation and enforcement. Methodology: With sample size of 51 financial firms made up of both listed and non-listed firms, we modelled earnings reporting quality as a function of IFRS compliance and relevant control variables using dichotomous logistic regression. Findings: Contrary to our hypothesis, IFRS compliance has a positive coefficient with our earnings management proxy for reporting quality. The positive coefficient infers higher earnings management and thus, lower earnings reporting quality with the new reporting standards. Our result suggests that the application of IFRS does not necessarily im”

Keywords: effect, IFRS, Compliance, earnings, reporting, quality, financial firms, Ghana