IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION ON FINANCIAL REPORTING QUALITY OF SMES IN NIGERIA

ABSTRACT The study examined how implementing International Financial Reporting Standards (IFRS) would affect the calibre of financial reporting by SMEs in Nigeria. Specifically, assessed the influence of adopting International Financial Reporting Standards (IFRS) on the financial reporting quality of SMEs in Nigeria; analyzed how the awareness and understanding of IFRS has influenced stakeholders' decision-making processes regarding SMEs in Nigeria; examined the perceived benefits of IFRS adoption for SMEs in Nigeria in terms of enhancing financial reporting transparency and relevancy; and evaluated the level of adherence to IFRS standards among SMEs in Nigeria and its impact on the comparability and reliability of financia] information. A descriptive quantitative research design is employed for this study to assess the relationship between IFRS adoption and financial reporting quality among SMEs in Nigeria. A sample size of 60 SMEs in Ogbomoso, Oyo State Nigeria were examined. The tests were conducted using Statistical Packages for Social Sciences (SPSS) to run the analysis for more robust result Objective one result revealed that the Adoption of IFRS by SMEs empirically showed a positive significant relationship towards FRQ. Objective two revealed activity awareness and understanding of IFRS has positively influenced stakeholders' decision-making processes. Objective three revealed that the perceived benefits of IFRS adoption for SMEs empirically showed a positive significant relationship towards on FRQ. Objective four revealed that the level of adherence to IFRS standards among SMEs in Nigeria has a positive significant impact on the comparability and reliability of financial information.