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

Vincent Opeyemi Abraham and Mahmood Omeiza Adeiza
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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

International Journal of Research and Scientific Innovation, 2020, vol. 7, issue 6, 174-180

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.

Date: 2020
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