EFFECT OF IFRS ADOPTION ON SMALL AND MEDIUM SCALE ENTERPRISE IN NIGERIA ( A STUDY OF FRIESLAND CAMPINA WAMCO NIG PLC, SANA)
- Project Research
- 1-5 Chapters
- Quantitative
- Chi-Square
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
BACKGROUND OF THE STUDY
The globalization of economic activities has resulted in an increased demand for high quality, internationally comparable financial information that will guide companies and investors operating beyond borders. The International Accounting Standards Board (IASB) was prompted to develop a single set of global accounting standards that require comparable information in financial statements in order to assist participants in various capital markets around the world and other users of accounting with timely information, access to reliable income and statements of affairs that will aid economic decisions, as a result, International Financial Reporting Standards (IFRS) were created by the board (IASB, 2007). According to Anacoreta, and Silva (2015), the International Financial Reporting Standards (IFRS) are a set of prescriptive rules and guidelines with global reach and appeal that provide direction and guidance on how businesses in a globalized world can achieve the goals of proper record keeping, transparency, uniformity, comparability, and public confidence in financial reporting. All of these characteristics speak to complete transparency and/or fair portrayal. Thus, full disclosure was dedicated to guaranteeing data accuracy in financial reports which was presented to Nigerian regulatory bodies, such as the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) to execute this different sector of their economy (Public and Private sectors) in other measure up with what is obtainable at the international market.
Historically, the International Accounting Standard Committee (IASC) was formed in 1973 by 16 professional bodies from various countries, including the United States of America, the United Kingdom, France, Canada, Germany, Australia, Japan, the Netherlands, and Mexico, with the goal of establishing an acceptable global high quality financial reporting standards. Howbeit, in order to harmonize with international practices, the Federal Executive Council (FEC) approved the convergence of Nigerian SAS with the International Financial Reporting Standards (IFRS) on January 1, 2012. Furthermore, FEC also established an IFRS adoption committee, where it was decided that Public Listed Entities(PLE) and Public Interest Entities (PIE) should adopt the International Financial Reporting Standards (IFRS) in the preparation of their financial statements by January 2012. Specifically, all other Public Interest Entities are required to implement the International Financial Reporting Standards (IFRS) for statutory purposes by January 2013, while SMEs were required to adopt the IFRS by January 2014 (Fowokan, 2011).
In emerging economies, Small and Medium-sized companies (SMEs) are often recognized as the engine of economic growth and equitable development. Small and Medium Enterprises, are widely regarded as the backbone of every economy on the planet hence the rising need to ensure credibility and transparency in the financial reporting standard of SMEs. They are labor-intensive, capital-efficient, and capable of assisting the government in the creation of a wide range of new employment. They are also seen as crucial to emerging nations' economic progress, poverty reduction, and job creation (Abdul 2018). However, SMEs in Nigeria must have a similar financial reporting framework and accounting standards convergence to IFRS in order to deal with capital market globalization efforts to improve financial communication, support them in obtaining financial resources from foreign capital markets, and meet their need for a common international accounting language. According to Yoshino and Taghizadeh-Hesary, (2019), Small and Medium-sized Entities (SMEs) are entities that are not subject to public accountability and do not have debt or equity instruments that are traded on a public exchange but due to transformation brought by globalization, the International Accounting Standard Board (IASB) developed IFRS for SMEs in July 2012, allowing SMEs to present their financial statements in a single, cross-border reporting standard.
Related Project Materials
IMPACT OF MICRO-FINANCE BANKS ON SMEs IN NIGERIA
ABSTRACT
The critical causes on why financing small and medium scale industries by microfinance banks in Nigeria have no...
ADOPTION OF ICT IN THE PROVISION OF LIBRARY SERVICE (A CASE STUDY OF FEDERAL UNIVERSITY LOKOJA)
Background of the study
Layman tends to equate the application of ICT in any profession to being online...
EFFECTS OF LIBRARY INSTRUCTIONS ON THE USE OF INFORMATION RETRIEVAL TOOLS BY STUDENTS IN POLYTECHNIC LIBRARIES
Abstract
Instructing library users on effective utilization of information resources and services could not be over emphasized in tertiar...
THE IMPACT OF CORRUPTION ON THE NIGERIA ECONOMY(1999-2015)
BACKGROUND OF STUDY
Corruption is a global issue which is an endemic to government all over the world. The World Bank we...
DESIGN AND IMPLEMENTATION OF A MEDICAL DIAGNOSTIC SYSTEM
BACKGROUND OF STUDY
Medical diagnosis, (often simply termed diagnosis) refers both to the process of attempting to dete...
THE ROLE OF MORTGAGE INSTITUTION IN HOUSING IN NIGERIA (A CASE STUDY OF ANAMBRA HOME LIMITED (2006-2014)
ABSTRACT
This research work focuses on the “The role of mortgage institution in housing delivery in Nigeria. A cas...
THE IMPACT OF FAMILY PLANNING CAMPAIGN ON IBAGWA COUPLES IN IGBO EZE SOUTH LOCAL GOVERNMENT AREA ENUGU STATE.
ABSTRACT.
The study examined the impact of family planning campaign on Ibagwa...
ADMISSION SCREENING FOR TERTIARY INSTITUTIONS
Computer plays a listed role in our daily lives and management. Application of compu...
DESIGN AND IMPLEMENTATION OF AN ONLINE VOTING SYSTEM
Background of the Study
The federal republic of Nigeria comprises of 36 states, The federal capital territory (FCT), and 774 local govern...
GOVERNMENT OWNERSHIP AND ITS EFFECT AND CONTROL OF MASS MEDIA OBJECTIVITY REPORTING
Abstract
This project takes a look at the “Effect of Government Ownership and Control on Mass Media Objectivity....
