The study examined the effect of IFRS on earnings management with a sample of manufacturing firms in the UK and Nigeria. The study made use of cross-sectional data obtained for a period of 10 years from 2000 - 2009 for UK and 2007-2016 for Nigeria. Both the pre-diagnostic test and post estimation were carried out to evaluate the normality of the series. This study employed Pooled Ordinary Regression to achieve its set research objectives. Discretionary accrual was used to proxy earnings management based on the Modified Jones Model. The results showed that IFRS adoption has a positive and insignificant effect on earnings management in the UK, but exerts positive and significant in Nigeria. However, the result for the other moderating variables shows that only size and cash exerted a significant effect on earnings management in both the UK and Nigeria. The study suggests that management of an organization has a significant role to play in ensuring the effective operation of the internal control system implemented. Preparation of financial statement by the stipulated laws and regulation to ensure that the financial report presented shows an accurate and fair view of the economic condition of the organization to aid the economic decision of stakeholders.
Keywords: Earnings Management, International