The demand for reliable financial reporting is unavoidable for users who need it for investment and other decision-making purposes. Hence, this study examined the effect of International financial reporting standard on the quality of financial statement of Sterling Bank Plc. The study аdоpted a descriptive survey research design. The population is represented by 150 members of staff of Sterling Bank in Ibadan, Oyo State. Sixty (60) staff were randomly selected, and questionnaire were administered to them. The study employed descriptive statistical method as well as the Statistical analysis for Social Sciences (SPSS) to analyze data. The result shows that there is a significant relationship between IFRS adoption and the clarity principle of Nigerian banks. There is need for essential qualities of information in financial reports. When annual reports are well organized users can comprehend what their needs are. Given the foregoing, the study recommended that companies should endeavour to use the opportunity presented by the adoption of IFRS to improve their business process and procedures, Nigeria's adoption of IFRS should be supported as a ma􀄴er of urgency to enable full a􀄴ainment of the country's economic potential, IFRS should be included be included in the syllabus of Accounting Department in the tertiary institutions so that students will have the knowledge before entering into the labour market and the accountancy institutes in Nigeria must embark on massive education training and retraining of their members through continuing professional development programmes.