ABSTRACT

 This study examined the challenges of international financial reporting standard implementation by small and medium enterprises. The survey research design was adopted in the study. The data for the study was drawn from answered questionnaires from a total of 100 sampled respondents from BIRS. Using descriptive statistics and chi-square (x2) as tools for data analysis, the study found that there is significant effect of accounting education and training among authorities and stakeholders in the practical implementation of IFRS in Nigeria. The study therefore recommends that organizations should strengthen profession education and training. The professional accountancy bodies should align their continuing professional education requirements with IFAC guidelines. Business ethics should be taught as separate subject in undergraduate accounting and business programs and revision to universities accounting curricular should enable students to gain exposure to practical IFRS application.

CHAPTER ONE

 INTRODUCTION

1.1       Background of the study

The move towards developing an acceptable global high quality financial reporting standards started in 1973 when the International Accounting Standards Committee (IASC) was formed by professional accounting bodies from Canada, United States of America, United Kingdom, Germany, France, Netherlands, Australia, Mexico and Japan. The IASC was to formulate uniform and global accounting standards aimed at reducing the discrepancies in international accounting principles and reporting practices. In this light, the IASC was established and has actively been championing the uniformity and standardization of accounting principles for over two decades, (Carson cited in Madawaki, 2012). In April 2001, the IASC was reorganized into International Accounting Standards Boards (IASB). Henceforth, the IASB has updated the already existing International Accounting Standards and referred to them as International Financial Reporting Standards (IFRS).

IFRS are a single set of high-quality; understandable standards for general purpose financial reporting which are principles-based in contrast to the rules based approach. IFRS comprises of fourty one (41) IAS; eighteen (18) IFRS; the Standing Interpretation Committee Statements, eleven (11) SICs; and the International Financial Reporting Issues Committee Statement, eighteen (18) IFRICs, Akhidime (2010). While some countries have been using these standards since 2005, they are however new for transition economies like Nigeria. In Nigeria, implementation of IFRS was launched in September 2010, by the Honorable Minister, Federal Ministry of Commerce and Industry, Senator Jubril Martins-Kuye(OFR). The adoption was organized such that all stakeholders use the IFRS by January 2014.  The adoption was scheduled to start with Public Listed Entities and Significant Public Interest Entities who were expected to adopt the IFRS by January 2012. All Other Public Interest Entities are expected to mandatorily adopt the IFRS for statutorily purposes by January 2013 and Small and Medium-Sized Entities shall mandatorily adopt IFRS by January 2014, (Jubril & Michael, 2010). However, the successful adoption and implementation of these standards will remain a mirage in any country including Nigeria, (Madawaki, 2012). In the light of this therefore, this study focused on the process of adopting the IFRS by small and medium enterprises in Nigeria as a developing economy, the benefits and challenges of IFRS, bearing in mind the prevailing domestic legal and regulatory framework of accountancy.

TABLE OF CONTENTS

Title Page        -           -           -           -           -           -           -           -           -           i

Declaration         -        -           -           -           -           -           -           -           -           ii

Approval Page            -           -           -           -           -           -           -           -           iii

Dedication       -           -           -           -           -           -           -           -           -           iv

Acknowledgement      -           -           -           -           -           -           -           v

Table of contents                    -           -           -           -           -           -           -       vii

Abstract           -           -           -           -           -           -           -           -           -           x

CHAPTER ONE: INTRODUCTION

1.1       Background of the Study        -           -           -           -           -           1

1.2       Statement of Problem            -           -           -           -           -           -           3

1.3       Objective of the Study            -           -           -           -           -           -           3

1.4       Research Questions   -           -           -           -           -           -           4

1.5       Research Hypothesis -           -           -           -           -           -           4

1.6       Significance of the Study       -           -           -           -           -           5

1.7       Scope of the Study                 -           -           -           -           -           6

1.8       Structure of the Study            -           -           -           -           -           -           6

1.9       Definition of Operational terms           -           -           -           -           8

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1       Introduction     -           -           -           -           -           -           -           9

2.2       Conceptual Clarification -       -           -           -           -           -           9

2.2.1    Understanding International Financial Reporting Standards- 9

2.2.2    Development of Accounting Profession in Nigeria: Brief Overview

            -           -           -           -           -           -           -           -           -           -           12

2.2.3    Legal and Regulatory Framework of Accounting in Nigeria; (CAMA) 1990  -           -           -           -           -   -        -           -           13

2.2.4 The Nigerian Accounting Standard Board (NASB) Act 2003.- 14

2.2.5    Key Differences between GAAP and IFRS   -           -           -           14

2.2.6    IFRS Adoption Process in Nigeria      -           -           -           -           20

2.2.7    Annual Reports in the IFRS    -           -           -           -           -           24

2.2.8 Key Stakeholders in the Adoption and Implementation of International Accounting Standards           -           -            -           -           -           28

2.2.9 Challenges to IFRS in Nigeria   -           -           -           -           -           36

2.3       Review of Empirical Studies  -           -           -           -           -           41     

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction     -           -           -           -           -           -           -           45     3.2          Research Design        -            -           -           -           -           -           -           45    

3.3       Population of the Study          -           -           -           -           -           46   

3.4       Sample and sampling technique        -           -           -           -           46

3.5       Source of Data           -           -           -           -           -           -           -           46 

3.6 Instruments of Data Collection  -  -           -           -           -           -           47

3.7       Techniques for Data Analysis -           -           -           -           47    

CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND INTERPRETATION OF RESULTS

4.1       Introduction     -           -           -           -           -           -           -           51  

4.2       Data Presentation and Analysis          -           -           -           -           51  

4.3       Test of Research Hypothesis -           -           -           -           -           61   

4.4       Discussion of Result   -           -           -           -           -           -           63 

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of findings  -           -           -           -           -           -           65       

5.2       Conclusion      -           -           -           -           -           -           -           -           65   

5.3       Limitation of the Study            -           -           -           -           -           66   

5.4       Recommendation       -           -           -           -           -           -           67

5.5       Suggestion for Further Research       -           -           -           -           68   

References

Appendix

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