Abstract:
SMEs have come to accept the importance of accounting information
harmonization in order to remain in today’s business environment. In 2009,
the IASB developed and published the IFRS for SMEs in response to the need
for a high quality internationally comparable and transparent financial
information. In January 2012, the Institute of Chartered Accountants, Ghana
directed the use of IFRS for SMEs in Ghana for reporting periods beginning
2013. However, there are widespread reports of non-compliance regarding the
2013 financial reports which resulted in the extension of the compliance
period to 2015 by the Institute (ICAG, 2014). The result indicate that Eighty
Five (85%) of the sampled entities prepare financial statements. However,
most of these financial statements are prepared in compliance with the Ghana
National Accounting Standards and others with the full IFRS. The implication
of this finding is that, internationally, there is no demand on SMEs to prepare
financial reports for international users hence no compliance regarding the
directive by ICAG regarding 2015 period.It was recommended that there
should be a continuous education, sensitisation, and communication to
stakeholders of issues associated with IFRS for SMEs should commence in
earnest. Also A rigorous IFRS/IFRS for SMEs capacity building programme
should be embarked upon by all regulatory bodies, firms and training
institutions in order to provide the needed manpower for the successful
implementation of the IFRS for SMEs.
