Journal Press India^®

Author Details ( * ) denotes Corresponding author

Micro, small and medium-sized enterprises (SME) are the engines that propel the world economy; they are essential sources of jobs, they create entrepreneurial spirit and innovation in the economy and are thus crucial for fostering competitiveness and creativity. The objective of this study therefore, is to ascertain the need for International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) instead of Statement of Accounting Standards (SAS), to ascertain the extent to which IFRS aids managements in attaining goals and objectives as well as improving its market share and to ascertain the challenges for Non-compliance (causes and penalties) with international financial reporting standard for Small and Medium Enterprises. Analysis of variance (ANOVA) was used to test hypothesis, among the findings were; a major factor why IFRS is adopted by Nigeria is because other countries have adopted it, the size of entities to participate in IFRS for SMES varies, adopting a globally accepted financial reporting is relevant to small firms as they operate in a globalized world. This study recommends that the IASB should ensure full implementation/compliance of IFRS for SME by companies that fall under that category, the cost of acquiring IFRS education should also be subsidized for small firms by major accounting regulatory bodies in Nigeria.

Keywords

Small and Medium Scale Enterprise; International Financial Reporting Standard; Statement of Accounting Standard.

1. Agoglia, CP, Doupnik, TS, Tsakumis, GT. Principles-based versus rule-based accounting standards: The influence of standard precision and audit committee strength on financial reporting decisions. The Accounting review, 86, 2011, 747,


2. Akindele, AO. The impacts of international financial reporting standards adoption on financial statements: The case of Nigeria. Journal of Business Economics and Tourism, vaasa university of applied sciences. 2012.


3. Akintola Owolabi. Adopting international financial reporting standards (IFRS) in africa: benefits, prospects and challenges. African J. Accounting, Auditing and Finance, 1(1), 2012, 77.


4. Aremu MA, Adeyemi SL. Small and Medium Scale Enterprises as A Survival Strategy for Employment Generation in Nigeria .Research Journal of Finance and Accounting: 4(1), 2011.


5. Callao, SJ, Jarne, GK., La’inez, CB. International capital market pressures and voluntary annual report disclosures by U.S. and U.K. multinationals. Journal of International Financial Management and Accounting, 6(I), 1995, 43 - 68.


6. Darrel scott; Board member, chairman of the SME Implementation Group and Michelle Fisher; Senior Technical jmanager, IFRS for SMEs.


7. Eke, PO, Onafalujo, AK, Akinlabi BH. Impact of International Financial (_/Reporting Standards on Insurance Management in Nigeria. Middle Eastern Finance and Economics ISSN: 1450-2889: 12, 2011.


8. Ekpenyong, DB, Nyong, MO. Small and Medium-Scale Enterprises in Nigeria: Their characteristics, problems and sources of finance. African Economic Research Consortium. Research Paper sixteen, 1992.


9. Ekwem, Ijeoma, Small and medium scale enterprises development in Nigeria: Constraints and policy options Research report presented in partial fulfillment of the requirements for the degree of Master of Development Finance at the University of Stellenbosch, 2012


10. Ezeani NS, Oladele R. Adoption of international financial reporting standard (IFRS) to enhance financial reporting in Nigeria universities Arabian Journal of Business and Management Review (OMAN Chapter) 2 (3), 2012, 70.


11. Fowokan T. IFRS Adoption in Nigeria -Tax Implications. Paper presented at CITN Seminar on IFRS Adoption in Nigeria, 2011.


12. Gyasi A. Adoption of International Financial Reporting Standards in Developing L,' Countries - The Case of Ghana. Business Economics and Tourism 2010.


13. Glaum M, Street DL. Compliance with the disclosure requirements of Germany's new market: IAS versus US GAAP. Journal of International Financial Management and Accounting, 14 (1), 2003, 64- 100.


14. Holt G. IFRS for SMEs.retrieved January 23, 2012 from http://www.ifrs.org 2009


15. IASB, Exposure draft on the proposed JFRS for small and medium sized Entities. London: IASB, 2010.


16. IFRS Foundation; Training Material for the IFRS for SMEs (version 2013-1) http//www. iosrjournals. Org


17. Kanu, C., Onuoha N., and Egwu,, G.I. 2014,


18. KPMG LLP Issues In-Depth. August No. 09(2), 2009.


19. Lagos Chamber of Commerce and Industry Small and Medium Enterprises and Distributive Group. 2012/www.lagoschamber,com/index2.php?page=sectoralb X Nigerian Accounting Standard Board. (2010). Report of the Committee on Road Map to the Adoption of International Financial Reporting Standards in Nigeria. Retrieved 18 Nov, 2011 from fJittp:/Avww.nasbnigeria.org/attachments/articIe/83/Roadmap%20FinaI%20Report%20September%202010.pdf -,


20. Lagos Chamber of Commerce and Industry Small and Medium Enterprises and Distributive Group. 2012 from http://www.lagoschamber.com/index2.php7page~sectoral


21. Minisola B. Challenges of Small and Medium Enterprises in Nigeria. Conference paper, 2005


22. Nobes C, Parker R. Comparative International Accounting, Prentice Hal], 2004.


23. Nigerian accounting standard board. Report of the committee on road map to the adoption of international ficnail reporting standards in Nigeria. 2011/www.nasbnigeria.org/attachments/article/83/roadmap%20final%20reprot%20sepember%202010.pdf.


24. Nwachukwu, I. IFRS challenge forces coys to delay FY'13 results submission.Business Day, 1, 2014, 4.


25. Odia,.JO, Ogiedu, KO. IFRS Adoption: Issues, Challenges and Lessons for Nigeria and other Adopters .Mediterranean Journal of Social Sciences. 4(3), 2013, 389-400.


26. Olanrewaju, Oluseyi Oladimeji: IFRS PAL. Handy Approach ( IFRS) Onyinye Oyeoka Ifeoma, Adetula D.T. and Owolabi, Folasshade; Department of Accounting, Covenant University, Ota,Ogun State, Nigeria.


27. PricewaterhouseCoopers. IFRS for small and medium-sized entities. Pocket Guide/www.pwc.com, 2009


28. PricewaterhouseCoopers,Illuminating Values: The Business Impact of IFRS. \vww.pwcgIobaJ.com 2003


29. Winney K, Marshall, D, Bender B, Swiger J . Accounting Globalization: Roadblocks to IFRS Adoption in the United States. Global Review of Accounting and Finance. 1(1), 2010, 167-178.