An Evaluation of the Challenges Faced by Small and Medium Enterprises (SMEs) in Implementing the International Financial Reporting Standards (IFRSs) in Emerging Markets: Evidence from Ghana

Ibrahim Zubairu, Marim Alenezi () and Husseini Muhammadu
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Ibrahim Zubairu: Accra Technical University
Marim Alenezi: Prince Mohammed Bin Fahd University
Husseini Muhammadu: Accra Technical University

A chapter in Impacting Society Positively Through Technology in Accounting and Business Processes, 2025, pp 151-181 from Springer

Abstract: Abstract This research evaluates the challenges encountered by Small and Medium Enterprises (SMEs) in implementing International Financial Reporting Standards (IFRSs) in emerging markets. The study employs a mixed-methods approach, incorporating both quantitative analysis and qualitative exploration, to uncover the multifaceted nature of these challenges. The research begins by reviewing the existing literature to establish a framework for understanding the factors influencing IFRS adoption in the context of SMEs in emerging markets. Subsequently, primary data were collected through surveys, interviews, and case studies from diverse sample of SMEs operating in emerging markets. The survey data quantitatively capture the prevalent challenges faced by SMEs, while qualitative insights from interviews and case studies enrich the understanding of these challenges within the specific contextual nuances of each market. The findings highlight key challenges including limited awareness and understanding of IFRS, financial constraints, complexities in complying with IFRS requirements, shortage of qualified professionals, and cultural and institutional factors unique to emerging markets. Furthermore, the research underscores the varying degrees of impact of these challenges on SMEs of different sizes, sectors, and geographical locations within emerging markets. Drawing on these insights, the study concluded by offering a synthesized set of strategies tailored to address these hurdles, contributing practical recommendations for stakeholders aiming to support IFRS adoption among SMEs in emerging markets.

Keywords: International Financial Reporting Standards (IFRSs); Small and Medium Enterprises (SMEs); IFRS adoption; Implementation; Emerging markets (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-84885-8_8

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DOI: 10.1007/978-3-031-84885-8_8

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