Abstract:
The study assessed the implementation of International Financial Reporting
Standards for Small and Medium Enterprises in Ghana. Precisely, the study
ascertained factors influencing the implementation of IFRS for SMEs;
identified the extent of implementation of IFRS for SMEs and examined the
challenges associated with the implementation of IFRS for SMEs in Ghana.
Primary data was sourced through questionnaire administered to 230 firms
licensed from the Institute of Chartered Accountants, Ghana. Statistical Package
for the Social Science (SPSS) version 21 was used to process the study data.
The study employed explanatory research design. The main findings of the
study were that IFRS for SMEs implementations enable SMEs to obtain
financial assistance from financial institutions, improve their financial reporting
and enhance SMEs financial reporting transparency. Also, the study found that
audit firms often implement IFRS for SMEs on their financial statement
presentation, statement of financial position, income statement, among others.
The study shows that the implementation of IFRS for SMEs in Ghana is
characterized with high compliance cost, lack of skilled personnel, lack of
clarity of expressions among others. Hence, it was recommended that the
management of audit firms in Ghana should start raising awareness among
SMEs partners, managers and finance teams about the benefits of IFRS
implementation. Again, the IFRS for SMEs implementation in Ghana should be
tailored to specific needs of each business. Finally, the management of audit
firms should offer training workshops to build a strong foundation for successful
IFRS for SMEs implementation.
