The Prospective of Adopting International Financial Reporting Standards(IFRS) for Small and Medium Sized Enterprises in Ethiopia
No Thumbnail Available
Date
2021-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
Even though it is in its early stage of development in Ethiopia, International Financial Reporting Standards for Small and Medium Enterprises (IFRSs for SMEs) have been adopted by more than 100 countries across the world. The main objective of this study is to assess the prospective of adopting International Financial Reporting Standards by Small and Medium Enterprises in Ethiopia (IFRS for SMEs). This was achieved by classifying the respondents in to two groups. These are the reporting and user groups. The reporting are those individuals who will do the financial report. And the user groups are those individuals who use the financial reports to do business valuation and other financial analysis. By using a closed ended five-point Likert scale items questionnaire, the researcher planned to reach 60 respondents. But eventually 52 respondents responded to the questionnaires and of which 35 of them are preparers and 17 are users. A non-probability sampling such as purposive or judgmental sampling was used for the study. Using measure of central tendency (mean) and measure of dispersion (standard deviation) the research data was analyzed; and the study investigated that the prospective of adopting IFRS for SMEs in Ethiopia is constructive. The state and firms are ready to adopt International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs). There is also no doubt about the desirability and suitability of International Financial Reporting Standards for Small and Medium Enterprises in Ethiopia. But the reporting and users are not identical in their level of agreement concerning the availability of IFRS based professional and workers. The researcher believed that since the adoption and development of IFRS for SMEs in Ethiopia, would be impracticable without having IFRS based professionals and workers; it is therefore recommended that the Government of Ethiopia and other concerned entities should exert maximum efforts towards enhancing the availability of IFRS based professional and workers.
Description
Keywords
Prospective, IFRS, SMEs, IFRS for SMEs