Browsing by Author "Oriana Badiebo Akudago"

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    The Determinants Of Ifrs Adoption By Smes
    (knust, 2021-02) Oriana Badiebo Akudago
    The World Has Become A Global Economy, And Smes Are Also Becoming Increasingly Global. This Requires That Their Finances Are Presented In Such A Way That It Reflects International Standards. The Study Therefore, Explored The Available Conditions Which Necessitate Smes To Adopt And Apply The Various Ifrs In Their Business Operations And Their Effectiveness. The Study Was Cross-Sectional And Adopted A Quantitative Approach Which Involves The Generation Of Data In Quantitative Form. The Study Population Included The Business Owners, Their Accountants, Finance Managers And Auditors Of Smes. Specifically, The Study Focused On Main Stream Smes And Auditing Firms. Using The Purposive Sampling Technique, 57 Smes Were Selected As A Sample For The Study. The Data Was Analyzed With Both Descriptive And Inferential Analysis. Based On The Research Results, The Adoption Of Ifrs Was Very Beneficial In The Smes Sector. There Was Positive Relationship Between Ifrs Adoption And Improvement In The Smes Sector Such That 34.5% Variation Of Improvement In The Smes Sector Is Explained With The Adoption Of Ifrs. The Implementation Of Ifrs Is Affected By Several Factors Including Ownership Structure, Profitability, Perception Of Ifrs, Requisite Knowledge And Skills, Stakeholder Pressure, Pressure From Competitors And Pressure From Regulatory Bodies. These Factors Predict 75.4% Variation Of Ifrs Adoption Was Explained By These Factors. There Are However, Challenges To The Effective Implementation Of Ifrs In The Smes Sector. The Results Indicate That The Highest Ranked Challenge Was The Heterogeneous Nature Of Work In The Smes; Followed By Confliction Of Ifrs Standards With Certain Accounting Principles, Non-Commitment Of Management To Ifrs Implementation And Time Consuming Nature Of Ifrs. Averagely, The Level Of Ifrs Adoption Among The Smes Was High With Arguments Supporting The Decision For Certain Assumptions And Estimates; Highlighting Both The Positive And Negative Events; Providing Information On Corporate Governance; And Presenting The Report In A Well-Organized Manner. It Is Recommended That Regulatory Bodies Such As Bank Of Ghana, And Security And Exchange Commission Need To Intensify The Education Of Smes To The Possible Benefits And The Need To Implement Ifrs. In This Way, Management Would Be More Convincing To Incorporate Ifrs Standards Such As Inclusion Of Non-Financial Information And Provision Of Feedback To Users On Market Events