Impact of International Reporting Standard on Small and Medium Scale Enterprises in Nigeria

ABSTRACT

Despite the contributions of Small and Medium Scale Enterprise, it has been facing challenges of

diverse kind, which renders its benefits as though it is ineffective. One of the striking ways that was

developed in seeing that SMEs rise to meet up with future relevance is the introduction of IFRS for

SMEs. This was to give a global and universal direction to all SMEs and help the weaker businesses

succeed. Since it is to be adopted, the impact of its adoption to SMEs is to be plaid. This research work

investigates the Impact of IFRS on SMEs in Nigeria with a case study categorized into three (3) different

sections. A descriptive survey design was adopted. Two (2) research questions guided the study. Two

hypotheses were formulated and tested at 0.05 level of significance. Based on the findings of the study,

it was concluded that Company, Academicians and Agency agree with the fact that IFRS for SMEs has

not been widely adopted by SMEs in Nigeria. Also, the duo with exception of the Agency agrees that

IFRS for SMEs has tremendous impact on the SMEs in Nigeria. In the process, it was discovered that

the agency vested with the authority to put aright companies that were astray are not even aware of the

introduction of IFRS for SMEs not to talk of it adoption and impact on SMEs in Nigeria. It was, however,

recommended that there should be a thorough sensitization which should be done by the board which

encapsulates the benefits to be derived from the adoption of IFRS for SMEs.

Key words: IFRS, SMEs, Adoption, Impact, SMEDAN.

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