Get the complete project »
- The Complete Research Material is averagely 85 pages long and it is in Ms Word Format, it has 1 - 5 Chapters.
- Major Attributes are Questionnaire, Data Analysis, Abstract.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
This study sought to establish the relevance of International Financial Reporting Standard (IFRS) to small scale enterprises in Nigeria. The international accounting standard board (IASB), in its objectives and preamble, suppose that the beneficial effects from IFRS adoption include transparency, accounting quality and reduced cost of capital. Based on these assumptions, this study applied timeliness, simplicity/ understandability, quality, transparency and comparability to find out whether the adoption of IFRS has relevance to small scale enterprises in Nigeria. The study employed multiple regression analysis and the findings showed that there is a positive significant relationship between the variable timely preparation of financial statement and the adoption of IFRS. The study concluded that the adoption of IFRS is a big move for the firms, accounting regulatory body and the government in Nigeria because the benefits are more than the demerits as discussed earlier in this report. However, the study recommended that the government should introduce some incentives to motivate the SMEs or introduce compulsory adoption of these standards to ensure that all SMEs adhere to the adoption.
TABLE OF CONTENTS
Title Page i
Table of Contents vi
Chapter One: Introduction
- Background to the Study 1
- Statement of Problem 4
- Research Questions 5
- Objective of the Study 5
- Statement of Hypothesis(es) 6
- Significance of the Study 7
- Scope of the Study 8
- Limitations of the Study 9
- Definition of Terms 10
Chapter Two: Review of Related Literature
2.1 Introduction 11
2.2 International Financial Reporting Standards for
Small and Medium Scale Enterprises 12
2.3 Advantages of Adoption of IFRS for SMEs 14
2.4 Disadvantages or Challenges of Adoption of IFRS 17
2.5 Concept of Small and Medium Scale Enterprises 20
2.6 Financial Reporting by SMEs 24
2.7 Empirical Literature Review 30
Chapter Three: Research Method and Design
- Introduction 36
- Research Design 36
- Description of Population of the Study 37
- Sample Size 37
- Sampling Techniques 38
- Sources of Data Collection 38
- Method of Data Presentation 39
- Method of Data Analysis 39
Chapter Four: Data Presentation, Analysis and Interpretation
4.1 Introduction 44
4.2 Data Presentation 44
4.3 Data Analysis 54
4.4 Hypothesis Testing 55
Chapter Five: Summary of Findings, Conclusion and Recommendations
5.1 Introduction 65
5.2 Summary of Findings 65
5.3 Conclusion 67
5.4 Recommendations 70
Appendix I 77
Appendix II 78
1.1 Background to the Study
Government at all levels in Nigeria have in recent times emphasized on the diversification of the economy through the promotion of small and medium scale enterprises.
The importance of small and medium scale enterprises to the economic development of any country whether developed or developing cannot be
over-emphasized. They are the driving forces of economic and industrial development. To a large extent, small and medium scale enterprises play significant role in improving the living standard of the citizens of any nation by creating goods and services, stimulating private ownership and entrepreneurial skills, creating sources of revenue to both individuals and government developmental purposes, creating employment opportunities and aiding the development of indigenous technology. According to Adelaja (2014) SMEs are generally seen as labour intensive, capital saving and capable of helping create most of the one million new jobs the world will need by the end of the century.
Owing to the enormous benefits inherent in the development and sustainability of small and medium enterprises, government through the Small and Medium Scale Enterprises Development Agency of Nigeria (SMEDAN), Manufacturers Association of Nigeria (MAN), and other organizations such as the International Accounting Standards Board (IASB) have been on the vanguard of exploring possible means of promoting the activities of SMEs. According to Osotimehin (2012), no other development strategy has enjoyed as much prominence in Nigeria’s development plans as the Small and Medium Scale Enterprises (SMEs) development strategy.
The international Accounting Standards Board (IASB) in July, 2009 introduced the International Financial Reporting Standards (IFRS) for Small and Medium Scale Enterprises (SMEs) as a way of enhancing the activities of small and medium scale enterprises through improved accounting and reporting practices. IFRS for SMEs is a self-contained set of accounting principles that is based on full IFRS but has been simplified for SMEs (Deloitte, 2010).
Accounting and reporting information is a critical component of an enterprise business decision-making strategy. Accounting and reporting information enables an enterprise to perform the function of measuring its financial standing, assessing profitability and cash flow. Good accounting and reporting information can also help an enterprise in accessing funds both locally and internationally. As a result of the importance of SMEs to the economic and industrial development of Nigeria and the role of accounting and reporting information in enhancing the activities and growth of any enterprise, it becomes very pertinent to examine the relevance of IFRS for SMEs to Small and Medium Scale Enterprises in Nigeria, using selected enterprises in Benin, Edo State as case study.
1.2 Statement of Problem
All over the world, including Nigeria, greater emphasis have been on the growth and development o SMEs due to their contributions to economic, industrial and infrastructural development of any country.
However, according to Deloitte (2012), Nigeria has joined the league of Nations reporting IFRS and currently in her second phase of IFRS implementation with first phase drawing to a close on 31st December, 2012 when all listed and significant public entities are expected to produce first IFRS financial statements.
With the issuance of IFRS for SMEs by IASB in July, 2009, SMEs in Nigeria are also expected to adopt and implement IFRS in the preparation and presentation of their financial statements. This research work is thus intended to examine/assess the relevance of IFRS for SMEs to Small and Medium Scale Enterprises in Nigeria and to offer suggestions and recommendations on how enterprises can benefit from the adoption of IFRS for SMEs with reference to the selection and study of some SMEs in Benin metropolis.
More so, this research is intended to bridge the gap in knowledge of IFRS and its importance to SMEs in Nigeria.
1.3 Research Questions
In relation to the objective of the study, the following research questions are addressed:
1. Are Small and Medium Scale Enterprises in Nigeria aware of the introduction of IFRS for SMEs?
2. Are accounting and reporting practices of Small and Medium Scale Enterprises in Nigeria in accordance with IFRS for SM Es?
3. Are IFRS for SMEs adoption relevant to Small and Medium Scale Enterprises in Nigeria?
1.4 Objective of the Study
The broad objective of the study is to examine the relevance of IFRS to Small and Medium Scale Enterprises in Nigeria with particular emphasis on Small and Medium Enterprises in Benin metropolis.
Specifically, the objective of this study are to:
1. Ascertain whether SMEs in Nigeria are aware of the introduction of IFRS for SMEs.
2. Determine whether SMEs in Nigeria have already adopted 1FRS for SMEs.
3. Investigate if IFRS for SMEs are relevant to Small and Medium Enterprises in Nigeria.
1.5 Statement of Hypothesis
The study seeks to test the following hypotheses:
HO: SMEs in Nigeria are not aware of the introduction of IFRS for SMEs.
HI: SMEs in Nigeria are aware of the introduction of IFRS for SMEs.
HO: SMEs in Nigeria do not carry out their accounting and reporting practices in accordance with IFRS for SMEs.
HI: SMEs in Nigeria do not carry out their accounting and reporting practices in accordance with IFRS for SMEs.
HO: The adoption of IFRS for SMEs is not relevant to Small and Medium Enterprises in Nigeria.
HI: The adoption of IFRS for SMEs is relevant to Small and Medium Enterprises in Nigeria.
1.6 Significance of the Study
This study would be beneficial to practitioners, academicians, management of SMEs government and interested researchers in the following ways;
i. To practitioners and academicians: this study provides useful information about the relevance of IFRS to SMEs in Nigeria.
ii. To management of SMEs: This study provides information about the theoretical and actual benefits and challenges of adoption of IFRS for SMEs.
iii. To government, IFRS regulatory body and management of SMEs, it helps them to be aware of the perceived and actual benefits and challenges in the adoption of IFRS by SMEs and give insights on how to benefit from IFRS not effectively.
iv. To interested researchers, it help others that are interested in conducting detailed and comprehensive research study on the relevance of IFRS and SMEs in Nigeria to have a spring board to initiate their study on.
1.7 Scope of the Study
The topic International Financial Reporting Standard (IFRS) in SMEs in Nigeria is a wide and complex one. In this study the researcher is quite aware that the study is supposed to be a comprehensive survey of all small and medium enterprise in Nigeria but this could not be possible due to the fact that time and cost does not permit the researcher to move from one enterprise to the other.
However, the study has been designed to study selected small and medium enterprises in Benin metropolis. Only companies that fall within range of small and medium scale enterprises and are located within Benin metropolis are considered in this study. That means companies that are listed on the Nigerian Stock Exchange and publish their financial statements to the public are not covered in the study. A sample size of 50 was employed for effective result.
1.8 Limitations of the Study
This study is mostly limited by scope. The following are the limitations of this research study;
- The research is for small and medium enterprises in Nigeria but by design is limited to selected small and medium enterprises in Benin metropolis. This is a small population of the small and medium enterprises operating in Nigeria.
- There are larger concentrations of small and medium enterprises in towns like Lagos, Onitsha, Aba and Kano. It therefore becomes difficult to generalize the outcome of this research on the whole population of SMEs in Nigeria.
- Another limitation of this study is the difficulty in obtaining data.
- Most SMEs do not know the importance of keeping proper books of accounts.
- Lack of co-operation from management of SMEs is another trend as most of them are not willing to give their firms financial information, thinking that if might be misused by their competitors and fear of being reprimanded by their employer.
1.9 Definition of Terms
IFRS: This means International financial Reporting Standards. IFRS is used interchangeably with IFRS for SMEs which is the abridged version of the International Financial Reporting Standards for Small and Medium Scale Enterprises.
SMEs: this means Small and Medium Scale Enterprises, that is, not quoted privately owned enterprises that do not publish their financial statements to the public.
IASB: this means International Accounting Standards Board. It is the body responsible for publishing and reviewing of international accounting standards.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. AGRICULTURAL CREDIT UTILIZATION AMONG SMALL-SCALE FARMERS IN BIDA LOCAL GOVERNMENT AREA OF NIGER STATE, NIGERIA» CHAPTER ONE 1.0 Introduction 1.0.1 Agricultural Development in Nigeria Agriculture has been the most important sector of the Nigerian Economy. It empl...Continue Reading »
2. THE IMPORTANCE OF ACCOUNTING RECORDS IN PROFIT MAKING ORGANIZATION (A CASE STUDY OF ESCO SUPERMARKET, WARRI, DELTA STATE)» CHAPTER ONE INTRODUCTION 1.1 Background of the Study In turbulent time, an organisation has to be managed properly in order to withstand the changes i...Continue Reading »
3. EFFECT OF TREASURY SINGLE ACCOUNT ON MANAGEMENT OF PUBLIC SECTOR FUND - FEDERAL SECTOR ESTABLISHMENT IN MAIDUGURI» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY In 2015, Central Bank of Nigeria issued a circular directing all deposit money banks to implement...Continue Reading »
4. CASH BUDGETING AND THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs): A STUDY OF SELECTED SMEs IN UYO METROPOLIS, AKWA IBOM STATE» CHAPTER ONE INTRODUCTION 1.1 Background to the Study The growth and profitability of business organisations are hinged on the efficient and effective ...Continue Reading »
» TABLE OF CONTENT TABLE OF CONTENT Title page i Declaration ii Approval page iii Dedication iv Acknowledgement v Table of content vi Abstract viii CHAP...Continue Reading »
6. THE EVALUATION OF ACCOUNTING PRINCIPLES IN THE MANUFACTURING SECTOR (A CASE STUDY OF CELEST PLASTIC INDUSTRY, ASABA)» CHAPTER ONE INTRODUCTION 1.1 Background of the Study According to Olumba (2009) accounting is a service activity. Its function is to provide quantitat...Continue Reading »
7. INTERNAL CONTROL SYSTEM AS A BASIS OF FRAUD PREVENTION AND CONTROL IN NIGERIA FINANCIAL INSTITUTIONS (A CASE STUDY OF FIRST BANK OF NIGERIA PLC ENUGU ...» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY It is feared that the inability of management to ensure effective enforcement of rules and regulation...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.1Background of the study Most countries at all levels of development, small and medium scale enterprises (Small medium ente...Continue Reading »
» Abstract The study determines and establishes the connection between internal auditing and internal control systems on financial performance in an Ins...Continue Reading »
10. COMPARATIVE ANALYSIS OF ANTIMICROBIAL STRENGTH OF THREE MOST COMMON ANTIBIOTICS USED IN ENUGU (CASE STUDY OF ANTIBIOTICS DRUGS BROUGHT IN OBIAGU.)» INTRODUCTION 1.1 HISTORICAL BACK GROUND Antibiotics are chemicals when the chemical are put into the body; they stop the growth of kinds of germs. The...Continue Reading »