Abstract:
This paper provides empirical evidence regarding the perceived investigation into the
benefits and challenges of international financial report standard adoption and
implementation amongst small and medium enterprises in Kumasi metropolis. The Ghanaian
financial reporting framework is keeping pace with the global development due to the
globalization of the world’s economy and markets led companies and nations to become
world global players. Thus, as a result, Ghana made preparation and effectively launched the
International Financial Reporting Standards (IFRS) on January 23, 2007 and other bodies
were given a supplementary changeover period of two years to comply (United Nations,
2007), to make sure that all companies and Small and medium Scale Enterprise report or
prepare their financial statement base on International Financial Reporting Standards (IFRS)
for Small and medium Scale Enterprise in Ghana. . This study contributes to the limited
empirical research regarding the investigation into the benefits and challenges of
international financial report standard adoption and implementation amongst small and
medium enterprises in Kumasi metropolis in particular. In addition, International Financial
Reporting Standards (IFRS), different countries developed their own national accounting
standards or adopted that of other countries. However, movement of business toward a global
economy brought challenges in comparability, objectivity, reliability, understandability
among others. These issues have accelerated the need to move toward global accounting
standards. Thus these challenges spelt the need for a single set of high quality and globally
accepted accounting standards. This study recommends that, the SMEs in Kumasi
Metropolis, Ghana should work on skills and expertise gap through training and development
and to ensure that these standards are included in the academic and professional curricula.
Moreover, regulatory bodies should monitor and enforce these standards but where local
content is needed, convergence should be the solution.
Description:
A Project Report in the Department of Accounting Studies, submitted to the School
of Graduate Studies in partial fulfillment of the requirements for the award of the
degree of Master in Business Administration (Accounting) in the University of
Education, Winneba
JULY, 2019