INTERNATIONAL FINANCIAL REPORTING STANDARD FOR SMALL AND MEDIUM SCALE ENTERPRISE IMPLEMENTATION AND FINANCIAL REPORTING QUALITY OF SMALL AND MEDIUM SCALE ENTERPRISE

The failure of SME had been associated with lack of access to credit facilities for growth and expansion. The inability to access credit facilities had been linked with the inability of SME to present a good financial and non-financial information. Lenders of funds places so much importance on the quality of information when granting loans to borrowers of fund. Undoubtedly, the continuity or closure of any business depends on keeping accurate, timely and reliable information that can help access the financial position and performance of an entity. It is in this light that this study investigated IFRS implementation and financial reporting quality of SME in Ondo State. 

The study used the survey research design, the population of the study includes One hundred and ninety - four (194) medium scale enterprise in Ondo State according to SMEDAN, (2019). One hundred and three (103) medium scale enterprise were sampled the provisions of IFRS. Findings also showed that medium scale Enterprises are not consistent in implementing the provisions of IFRS since its adoption in 2012. Lastly, findings revealed that the implementation of IFRS will have positive effect on finacial reporting quality of SME. 

The study concluded that the implementation of IFRS improves the financial reporting quality of SME. The study therefore recommends that efforts should be made by government to establish a committee who will examine the financial reports of SMEs at government year-end in order to punish erring SME

Table of Content

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v                                                                                                                   

Table of contents vi      

List of Tables ix

List of Abbrevations x

Abstract xi

CHAPTER ONE: INTRODUCTION                                     

1.1 Background to the Study 1     

1.2 Statement of the Problem 2                      

1.3 Research Questions 4                   

1.4 Objectives of the Study 4                

1.5 Research Hypothesis 4                  

1.6 Significance of the Study 5                  

1.7 Scope of the Study 5                   

1.8 Operational Definition of Terms 6        

CHAPTER TWO: LITERATURE REVIEW                                                       

2.1 Conceptual Review 7                   

2.1.1 International Financial Reporting Standard Implementation 7                                                                      

2.1.2 Trend of IFRS implementation among SMEs 7                                       

2.1.3 IFRS Implementation and financial reporting quality 8    

2.1.4 Small and medium sized entities 9

 2.2 Theoretical review 10               

2.2.1 Stakeholders theory 10                               

2.2.2 Agency theory 11        

2.2.3 Institutional Theory 12                 

2.3 Empirical Review 12              

2.4 Gap in Literature 20                  

CHAPTER THREE: METHODOLOGY                                                                                 

3.1 Research Design 21                

3.2 Source of Data 21                                

3.3 Population of the Study 21                                

3.4 Sample size and Sampling Technique 21        

3.5 Research Instrument 22                                 

3.6 Reliability & Validity of Research instrument 22            

3.7 Measurement of variable 23

3.8 Data Analysis Technique 24                         

CHAPTER FOUR: DATAPRESENTATION, ANALYSIS AND

 DISCUSSION OF FINDINGS                                                                                                                                       

4.1 Descriptive Statistics 25                

4.1.1 Demographic Information of Respondents 25

4.2 Full implementation of the provisions of IFRS for SME 26

4.3 Level of consistency in the implementation of IFRS by small                     

               and medium sized entities in Ondo State 28

4.4 The effect of IFRS for SME implementation on financial 

               reporting quality of SMEs in Ondo State 32

 CHAPTER FIVE: SUMMARY, CONCLUSION AND

 RECOMMENDATIONS

5.1 Summary 33                           

5.2 Conclusion 34                                

5.3 Recommendations 34                      

References 44

Appendix 47