Impact of Ifrs 10 Adoption on Profitability of Listed Deposit Money Banks (Ldmbs) In Nigeria

International Financial Reporting Standard (IFRS) 10 is an amendment of International Accounting Standard (IAS) 27 that deals with Consolidated Financial Statements to account for subsidiaries, in order to institute a unitary control model that can be applicable throughout the organization. The amendment requires the implementers of IFRS 10 to emphasize a great judgement in determining if the entities are being controlled to warrant consolidation by the parent firm. This is because the procedures of consolidation for IFRS 10 do not change but only concerned with the option of whether an entity should be consolidated based on its new definition of control or not. This study therefore examined the impact of IFRS 10 adoption on the profitability of Listed Deposit Money Banks (LDMBs) in Nigeria with a view to finding out if there are variations in the performance of LDMBs pre- and post-consolidation era. The study used ex-post facto research design and had a population of 14 LDMBs appearing in the Fact-Book of the NSE as at 31st December 2020. Secondary source of data was used in gathering data from Nigerian Stock Exchange (NSE) Fact-Book as well as Annual Reports and Accounts of six (6) sampled banks. The sample size was arrived at through purposive/judgmental sampling technique based on a filter that the bank must not have changed its original name over the period of the study. The independent variables examined included consolidated earnings on assets, consolidated earnings on equity, consolidated earnings per share and consolidated dividend per share. The technique of data analysis adopted by the study was independent t-test and the findings indicated that, adoption of IFRS 10 had negative and significant impact on consolidated earnings on assets, but on the contrary, it had positive and significant impact on earnings per share and dividend per share. Findings also revealed positive but insignificant impact on return on equity of LDMBs in Nigeria over the period, it was therefore recommended that LDMBs in Nigeria should continue to adopt IFRS 10 to enhance a better financial performance of consolidated return on equity, earnings per share as well as dividend per share of LDMBs in Nigeria