Journal
Metropolitan Journal of Academic and Applied Research
MJAAR
The Impact of IFRS on Financial Management Quality: A Case of Stanbic Bank Fort Portal
Komuhangi Cleophus, Irumba Alex
| Journal | Metropolitan Journal of Academic and Applied Research (MJAAR) |
| Volume / Issue | Vol. 5, No. 9 |
| Published | 30 September 2026 |
| ISSN | 3006-6417 |
Abstract
This study examined the impact of International Financial Reporting Standards (IFRS) adoption on financial management quality at Stanbic Bank Uganda Limited's Fort Portal branch, contributing to the nascent but growing body of empirical literature on IFRS consequences in Sub-Saharan African commercial banking. Stanbic Bank Uganda, a subsidiary of Standard Bank Group and one of Uganda's systemically important financial institutions, had operated under full IFRS compliance since 2007, providing a mature adoption context in which long-run effects on financial disclosure quality, internal control systems, management accounting sophistication, credit risk reporting, and stakeholder financial confidence could be examined empirically rather than theoretically projected. Drawing on a cross-sectional survey of 214 respondents comprising branch management, finance staff, internal auditors, corporate clients, Bank of Uganda supervisors, and external auditors, supplemented by four-year financial statement analysis (2019–2022), this study employed descriptive statistics, hierarchy-of-controls IFRS compliance analysis, bivariate Pearson correlation and chi-square association, and multilevel mixed-effects regression to examine the determinants of IFRS-driven financial management quality improvement and the institutional factors that mediated this relationship. The findings demonstrated that IFRS-compliant financial disclosure quality (β = 0.587, p < .001), fair value measurement adoption (β = 0.521, p < .001), and credit loss provisioning under IFRS 9 Expected Credit Loss model (β = 0.487, p < .001) were the strongest independent predictors of financial management quality scores, while institutional factors including staff IFRS technical competence (OR = 6.84, p < .001), Big Four audit quality (OR = 5.12, p < .001), and management information system integration (OR = 4.74, p < .001) were the strongest structural predictors. The study benchmarks its human-capital-mediation findings against Asiimwe et al. (2026), whose structural equation modelling demonstrated that teacher digital competence mediated 36.9% of digital infrastructure's total effect on CBE implementation readiness (indirect β = 0.244), arguing that accounting staff IFRS technical competence constituted an analogous critical mediating variable between IFRS policy adoption and actual financial management quality improvement in the banking context. The study called for sustained IFRS technical training investment, enhanced Bank of Uganda supervisory capacity, strengthened audit quality requirements, and integrated financial reporting systems as the priority institutional conditions for maximising IFRS's financial management quality benefits in Uganda's banking sector.
Keywords
IFRS
Financial
Management and Quality
Cite This Article
Komuhangi Cleophus & Irumba Alex (2026). The Impact of IFRS on Financial Management Quality: A Case of Stanbic Bank Fort Portal. Metropolitan Journal of Academic and Applied Research, 5(9). https://journals.miu.ac.ug/pages/article.php?article_id=1885
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