- The goal of financial reporting is to make information available for decision making. Historically, there is diversity in financial reporting in different countries due to culture, legal systems, tax systems and business structures. International financial reporting standards (IFRS) harmonises this diversity by making information more comparable and easier for analysis, promoting efficient allocation of resources and reduction in capital cost. Rational utility maximation is the theoretical foundation on which this paper is rooted. The IFRS components are disclosed, the benefits and challenges together with the roadmap of its adoption in Nigeria are highlighted for the economic development of Nigeria.