IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v7y2020i6p174-180.html
   My bibliography  Save this article

Adoption of IFRSs by SMEs in Sokoto State, Nigeria: Issues, Challenges and Prospects

Author

Listed:
  • Vincent Opeyemi Abraham

    (Department of Accounting, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria)

  • Mahmood Omeiza Adeiza

    (Department of Accounting, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria)

Abstract

Understanding the vital role of SMEs in every economy, ranging from positive developments to creation of employments and their very key impact within the various sectors where they are operational is important. Using existing literature, to make an analyses whereby the benefits and likely challenges of implementing IFRSs for SMEs in Sokoto State, Nigeria can be deciphered, the general objective of this study was to investigate the likely issues, challenges and prospects that SMEs will encounter in adopting IFRSs for SMEs within a Nigerian State and those factors that could prevent the adoption of the standards by SMEs. To obtain answers to the research questions, questionnaires were distributed seeking the opinion of respondents. 75 questionnaires were distributed to Accountants, Accounts clerks, Analysts, Executives/Business owners, etc. out of which 60 were successfully retrieved. The data collected was analyzed using descriptive statistics. The results showed that the only issue capable of affecting the adoption of IFRSs for SMEs in Sokoto State is the proper monitoring of continuous professional development programs (CPDP). It was concluded that SMEs must seek ways to reduce any challenges in the adoption process and find ways of strengthening the system and ensuring continuity of the IFRSs adoption process. Accordingly, and despite the coherence between standard setting bodies and professional bodies, it was recommended that: professional bodies should remain involved in a robust implementation framework for the adoption process; there is need to encourage collaboration between professional bodies in the area of IFRSs for SMEs adoption; standard setting bodies should take up the responsibility to maintain unity between standard setting bodies and professional bodies.

Suggested Citation

  • Vincent Opeyemi Abraham & Mahmood Omeiza Adeiza, 2020. "Adoption of IFRSs by SMEs in Sokoto State, Nigeria: Issues, Challenges and Prospects," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(6), pages 174-180, June.
    • Handle: RePEc:bjc:journl:v:7:y:2020:i:6:p:174-180
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-7-issue-6/174-180.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/adoption-of-ifrss-by-smes-in-sokoto-state-nigeria-issues-challenges-and-prospects/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hana Bohušová & Patrik Svoboda, 2011. "What does the implementation of IFRS for SMEs bring for agricultural enterprises?," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 81-90.
    2. Baker, C. Richard & Barbu, Elena M., 2007. "Trends in research on international accounting harmonization," The International Journal of Accounting, Elsevier, vol. 42(3), pages 272-304.
    3. Catalin Nicolae ALBU, 2013. "How Relevant is Size for Setting the Scope of The IFRS for SMEs?," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 12(3), pages 424-439, September.
    4. Ray Ball, 2006. "International Financial Reporting Standards (IFRS): pros and cons for investors," Accounting and Business Research, Taylor & Francis Journals, vol. 36(S1), pages 5-27.
    5. repec:eme:mfppss:v:36:y:2010:i:11:p:931-948 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tlotlo Segotso & Jean Damascene Mvunabandi & Masibulele Phesa, 2024. "A Systematic Literature Review of the Challenges of Adopting and Implementing IFRS for SMEs in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 131-147, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alon, Anna & Dwyer, Peggy D., 2014. "Early Adoption of IFRS as a Strategic Response to Transnational and Local Influences," The International Journal of Accounting, Elsevier, vol. 49(3), pages 348-370.
    2. Hinke, J. & Stárová, M., . "Application Possibilities and Consequences of Biological Assets and Agricultural Produce Reporting in Accordance with IFRS Principles in the Czech Republic," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(4), pages 1-13.
    3. Valentin Burca & Teodor-Florin Cilan, 2013. "Multinational’s Influence in Decision to Adopt IAS/IFRS," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(1), pages 35-48.
    4. Paula Silva, Ana & Fontes, Alexandra & Martins, Adelaide, 2021. "Perceptions regarding the implementation of International Financial Reporting Standards in Portugal and Brazil," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 44(C).
    5. De George, Emmanuel T. & Li, Xi & Shivakumar, Lakshmanan, 2016. "A review of the IFRS adoption literature," LSE Research Online Documents on Economics 67599, London School of Economics and Political Science, LSE Library.
    6. Jan SIROKY & Jirina KRAJCOVA & Jana HAKALOVA, 2016. "The taxation of agricultural land with the use of multi-criteria analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(5), pages 197-204.
    7. Samuel, Sajay & Manassian, Armond, 2011. "The rise and coming fall of international accounting research," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(6), pages 608-627.
    8. Holger Daske & Luzi Hail & Christian Leuz & Rodrigo Verdi, 2008. "Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 46(5), pages 1085-1142, December.
    9. Nobes, Christopher & Stadler, Christian, 2013. "How arbitrary are international accounting classifications? Lessons from centuries of classifying in many disciplines, and experiments with IFRS data," Accounting, Organizations and Society, Elsevier, vol. 38(8), pages 573-595.
    10. Nicholas Pawsey & Lin Crase, 2013. "The Mystique of Water Pricing and Accounting," Economic Papers, The Economic Society of Australia, vol. 32(3), pages 328-339, September.
    11. Argilés bosch, Josep M.a & Aliberch, Anna Sabata & Blandón, Josep García, 2012. "A Comparative Study of Difficulties in Accounting Preparation and Judgement in Agriculture Using Fair Value and Historical Cost for Biological Assets Valuation," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 109-142.
    12. Cătălina Florentina PRICOPE, 2016. "The role of institutional pressures in developing countries. Implications for IFRS," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(607), S), pages 27-40, Summer.
    13. Efobi, Uchenna & Nnadi, Matthias, 2015. "Foreign Aid, IFRS Adoption and Foreign Direct Investment," EconStor Preprints 114568, ZBW - Leibniz Information Centre for Economics.
    14. Mary E. Barth, 2015. "Financial Accounting Research, Practice, and Financial Accountability," Abacus, Accounting Foundation, University of Sydney, vol. 51(4), pages 499-510, December.
    15. Paugam, Luc, 2011. "Valorisation et reporting du goodwill : enjeux théoriques et empiriques," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/8007 edited by Casta, Jean-François.
    16. Akisik, Orhan, 2020. "The impact of financial development, IFRS, and rule of LAW on foreign investments: A cross-country analysis," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 815-838.
    17. Nicolai JIERI, 2021. "Risk Assessment And Relevant Procedures In Order To Mitigate The Risks For The Revenue Recognized In Line With Ifrs 15," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 17(27), pages 41-47, October.
    18. repec:hum:wpaper:sfb649dp2012-010 is not listed on IDEAS
    19. Mohammad Issa Almaharmeh & Hamzah Al-Mawali & Ghassan Obeidat, 2018. "Mandatory IFRS Adoption and Analyst Coverage: Evidence from the UK," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 435-435, November.
    20. Clarkson, Peter M. & Walker, Julie & Nicholls, Shannon, 2011. "Disclosure, shareholder oversight and the pay–performance link," Journal of Contemporary Accounting and Economics, Elsevier, vol. 7(2), pages 47-64.
    21. Ole‐Kristian Hope & Wayne B. Thomas, 2008. "Managerial Empire Building and Firm Disclosure," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 46(3), pages 591-626, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjc:journl:v:7:y:2020:i:6:p:174-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.