Small and medium scale enterprises square measure the engine that drives most economies of the globe. Their importance to the economy of Nigeria can’t be unnoted. SMEs activities-both international and native have contributed vastly to the gross domestic product within the economy as they participate in producing, importation, exportation, employment etc. in step with Gono (2013), SMEs contribute to output and employment creation and that they are a nursery for the larger companies of the longer term. the foremost productive developing country over the last fifty years, Taiwan is constructed on a dynamic SME sector. tiny and medium enterprises (SMEs) have vie a big role in Taiwan‟s economic development in increasing exports and providing jobs.

The need to harmonize accounting coverage standards for organizations operational round the world has prompted the financial organisation of {nigeria|Nigeria|Federal Republic of Nigeria|African country|African nation} to line Jan 2014 as point in time for adoption of the International monetary coverage customary (IFRS) for tiny and medium scale enterprises in Nigeria. This mandate has posed lots of queries on the notice, readiness and monetary ability of SME operators to accommodates the new accounting coverage standards. This new era wherever economic process is quick changing into real, it’s imperative to research the result the IFRS adoption possess on tiny and medium scale enterprises as they need a key role to play in international change Nigeria. in step with OECD (2012), the amount of that economic process have an effect on SMEs may be a operate of their engagement in exportation activities. this can be significantly the case of SMEs in Nigeria, as Nigeria may be a major bourgeois of agricultural manufacture.
The introduction of IFRS in Nigeria and therefore the current state of economic process merely implies that SMEs cannot continue with native standards for monetary coverage functions. For SMEs concerned in international trade with subsidiaries and franchises in different countries to be additional productive internationally, it should accommodates the IFRS tips. As a results of the harmonization of accounting coverage standards, the adoption of the IFRS has been wide accepted by varied countries of the globe. However, the complete IFRS publicized by the IASB has been found to be unsuitable attributable to the revelation necessities, that square measure intensive for SMEs. For this reason, the IASB publicized a simplified version of the IFRS applicable to SMEs-the IFRS for SMEs. As a results of broad discussion of SMEs and customary standards for SMEs worldwide, the International accounting principle Board (IASB) introduced a global monetary coverage customary (IFRS) designed to be used by tiny and medium-sized entities (SMEs) on July nine, 2009 (International Accounting Standards Board, 2010). The introduction of IFRS specifically for SMEs was necessitated by several challenges visaged by these entities in adopting full IFRSs in monetary coverage, the most of that was the excessive revelation necessities, supported a analysis for SMEs (Nazri, 2010).

1.2 STATEMENT OF the matter
In Nigeria, the best challenge facing tiny and medium scale enterprises is access to finance. SMEs because the engine of the economy have the complete potentials to show the economy around for the higher, however their greatest challenge still remains underfinance.
With the introduction of IFRS, SMEs in Nigeria square measure mandated to adopt the new coverage customary from Jan 2014. the notice, acceptance and implementation of the new IFRS tips for SMEs square measure challenges for several African countries (Fortuin, 2011). several businesses still don’t perceive what choices square measure accessible and the way IFRS for SMEs interaction to their profit (Fortuin, 2011). this can be a sign of the dearth of awareness of the advantages increased through the employment of IFRS for SMEs which can successively inhibit SMEs from adopting them. The results of the survey by Deloitte in 2009 disclosed that forty third of SME respondents weren’t alert to the IASB’s customary IFRS for SMEs.
Poor monetary management and book-keeping square measure 2 major barriers braving SMEs once it involves accessing funds from monetary establishments and government agencies. A study conducted by Gono (2013) disclosed that the majority SMEs fail attributable to poor monetary management and coverage. thus it’s necessary for SMEs to follow this trend of economic coverage and revel in the complete edges that square measure associated.

The main aim of the study is to research the challenges facing the adoption and implementation of the IFRS amongst tiny scale enterprise house owners in Ikeja, Nigeria. Specific objectives of the study are:

to work out the amount of awareness of IFRS tips amongst SME operators in Ikeja.
to look at the extent to that IFRS is adopted by tiny and medium scale enterprises in Ikeja, metropolis state.
to determine the challenges of implementation of the IFRS tips for SMEs by tiny and Medium Scale Enterprises in Ikeja, metropolis state.

1.4 analysis queries
The study can realize answers to the subsequent questions:

what’s the amount of awareness of IFRS tips amongst SME operators in Nigeria?
What IFRS tips are adopted by SMEs?
What challenges do tiny and Medium Scale enterprises face in implementing the IFRS guidelines?

1.5 analysis HYPOTHESIS
In order to line an honest base for ending the analysis, the subsequent hypotheses were posed , basic cognitive process that by the time adequate answers are provided, the study would have coated necessary grounds. to attain this, the study seeks to check the subsequent 2 (2) operational hypotheses printed in null form:

Ho: the amount of adoption of IFRS tips by tiny scale enterprises is low.

2. Ho: The implementation of the IFRS doesn’t considerably influence the profitableness of tiny scale enterprises.

With an outsized share of companies within the state falling inside the little scale enterprises sub-sector, the necessity to obviously outline the scope and space of the study becomes imperative.

The study is so confined to the little scale enterprises operational in Ikeja government space of metropolis State, and nonetheless it’s straightforward to use the results of this analysis to realize insight into the complete tiny scale enterprises.

A study of this nature couldn’t are distributed with none hitch. Notable among the constraints was the scarcity of relevant empirical literature within the adoption of IFRS among tiny scale enterprises. Empirical info on issues of tiny scale enterprises square measure bumper in literature however work done on their monetary literature remains scanty which was a heavy limitation to the study.

Given the very important role and contribution that tiny scale businesses in developed and developing countries create, and considering the continuing reforms by the financial organisation of Nigeria for a property monetary skill framework for tiny and medium scale enterprises within the country, the importance of this study can’t be over emphasised.

The significance of this study so lies within the plan to document the issue that’s actually accountable for clogging the adoption of IFRS amongst tiny scale enterprises however that haven’t been appreciated, recognized or factored into the varied incentives schemes and policy measures being place up for SSEs within the state and therefore the nation at giant.

In addition, this analysis can equip house owners of tiny scale enterprises by encouraging them to allow the keeping of correct accounting records a bigger priority within the objectives of their business. With this, adequate info regarding the profitableness of the business are accurately famous.

Furthermore, except the results of the study contributory to the “knowledge bank” of tiny scale enterprises, it’ll stimulate additional analysises into this space since from research literature add this field remains lowest.

Lastly, it’ll be my pre-requisite for the award of Bachelor of Science (B.Sc.) Degree in Accounting.

This study is conferred in 5 (5) chapters. These chapters square measure organized in a very serial manner which will aid careful investigation and straightforward accomplishment of the objectives.
Chapter one may be a preview of the background of the study and therefore the problem(s) that necessitated the analysis. This ends up in the define of the objectives, vital of the study, analysis queries and operational hypothesis inside the sample scope of tiny scale enterprises in metropolis, Nigeria.
Chapter 2 presents the review of relevant works because it relates to the study. Also, theories regarding the dependent and freelance variables were mentioned. It additionally examines the theoretical framework of the adoption of IFRS and little scale enterprises.
Chapter 3 reveals the strategies of information assortment in reference to the analysis style, population and sample with stress on the model specification, estimation, validation and responsibility of analysis instrument.
Chapter four presents and analyses the info and additionally the findings, coping with the extent to that tiny scale enterprises adopt IFRS and its underlining challenges.
Chapter 5 summarizes major findings from the study, recommends tentative policy thrust and additionally states recommended areas of additional analysis.


tiny Scale Enterprises: tiny scale enterprises are often outlined as a business with employment level of less than five persons associated with an annual flip over of but 5 Hundred Thousand Nigerian monetary unit (N500, 000).
monetary Literacy: monetary skill is that the ability to know basic accounting and finance ideas further as its application, the power to use such data and skills to manage monetary resources effectively for a period of time of economic well being.
IFRS: International Fiancial coverage customary