PRE AND POST ADOPTION OF IFRS BASED FINANCIAL STATEMENT OF LISTED SMALL MEDIUM SCALE ENTERPRISES IN NIGERIA

Eluyela, F. D. and Adetula, D. T. and Oladipo, O.A. and Nwanji, T. I. and Adegbola, Otekunrin and Ajayi, A. and Faleye, A. (2019) PRE AND POST ADOPTION OF IFRS BASED FINANCIAL STATEMENT OF LISTED SMALL MEDIUM SCALE ENTERPRISES IN NIGERIA. International Journal of Civil Engineering and Technology (IJCIET), 10 (1). pp. 1097-1108. ISSN 0976-6308; 0976-6316

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Abstract

This study examined the comparison between pre and post-adoptionof IFRS based financial statements of listed SMEs in Nigeria. Data used weregenerated from the annual report of the sampled listed SMEs on Nigerian stock exchange considering the period 2012-2015. The study used Return on Capital Employed (ROCE), Return on Equity (ROE), Debt to Equity (D/E) and Earnings per Share (EPS) as a proxy for measuring the profitability, liquidity and market ratios of the sampled SMEs. We analyzedthe study data usingone-sample KolmogorovSmirnovtest, descriptive statistics and Mann Whitney u-test. Findings from the study showthat there isno significant difference between profitability and leverage ratios of IFRS and NGAAP-based financial statements of listed SMEs. Though further findings revealed that asignificant difference existsamidmarket ratios prepared under IFRS and NGAAP-based financial statements of listed SMEs. The major implication of the study is that IFRS has a significantimpact on marketratio. This is due to the introduction of fair value measurement and impairment of asset introduced by IFRS. Thus, the study recommends the need for SMEs to be involved in the continuous training of concerned personnel in order to comply with the requirement of International Financial Reporting Standard.

Item Type:	Article
Subjects:	H Social Sciences > HF Commerce
Depositing User:	Mr DIGITAL CONTENT CREATOR LMU
Date Deposited:	14 May 2019 11:16
Last Modified:	16 Sep 2019 09:17
URI:	https://eprints.lmu.edu.ng/id/eprint/2158

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