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

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. repec:eme:mfppss:v:36:y:2010:i:11:p:931-948 is not listed on IDEAS
    3. 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.
    4. 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.
    5. 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.
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    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.

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