Abstract:
The general objective of this study was to explore the perception of Micro, Small and
Medium Scale Enterprises (MSMEs) about International Financial Reporting Standards
(IFRS) and their preparedness to comply with IFRS requirements as it involves the
preparation of accounts. The research approach follows both the positivist and the critical
social research approaches since the adopted research design was the mixed method
strategy and employed both quantitative and qualitative methods for analyses. A random
sample of 125 respondents from the registry of the Cape Coast Metropolis was used for
the study. Structured Questionnaire and interviews were used to obtain the primary data
used for the analyses. The results indicated that Most of the Micro Small and Medium
Scale Enterprises in the Cape Coast Metropolis lack personal knowledge about
bookkeeping and have not heard of IFRS. A number of enterprises resort to traditional
methods of bookkeeping such as writing on walls, tables and keeping records in their
memories. The interview suggested that the respondents had fully believed in the efficacy
of their traditional methods. A relatively higher percentage of the respondents accepted
the importance of IFRS adoption in their business but most were of the view that the
IFRS processes are hectic to apply. The study recommends that the management of the
National Board for Small-Scale Industries (NBSSI) should organise more seminars and
conferences to educate their members on the need to keep proper records and adopt
international standards such as IFRS for MSMEs.
