Challenges of Implementation of International Financial Reporting Standards Amongst SMEs In Anambra State, Nigeria

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Challenges of Implementation of International Financial Reporting Standards Amongst SMEs In Anambra State, Nigeria

ABSTRACT

This study focused on the ‘Challenges of Implementation of International Financial Reporting Standard Amongst SMEs in Anambra State, Nigeria’. The study was prompted by the perceived poor implementation of IFRS amongst the Small and Medium Enterprises in Nigeria in spite of the January 2014 cutoff date for compulsory adoption of IFRS by all SMEs in Nigeria. Thus, the study examined the effect of high cost, technical skills, knowledge in Standard and Regulatory reviews on IFRS disclosure amongst SMEs in Anambra State. Primary data were used for the execution of this research work with survey research design. Data extracted from questionnaire were tested with the regression statistical tool using the Statistical Package for Social Sciences (SPSS) Version 20.0. The outcome of the analyses carried out shows that high cost of implementation of IFRS and technical skills have significant effect on the IFRS disclosure amongst SMEs in Anambra State. It was therefore recommended amongst others that Small and Medium Enterprises should hire accountants that are knowledgeable in the IFRS application and disclosure. This will help reduce the cost of training new employees and SMEs should also embark on the training of existing employees on technical skills required for the application and IFRS disclosure amongst SMEs.

Keywords: International Financial Reporting Standards (IFRS); SMEs; Anambra State; IFRS Disclosure

Authored by

Prof. Austin N. Odum1 and Cheche, Kalu Cheche2

Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria1,2

FULL PDF  |  DOI: 10.5281/zenodo.7875340

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