An analysis of the adoption of International Financial Reporting Standards by Small and Medium Entities: A Case Study in Kadoma
- Author
- Sweswe, Thabo
- Title
-
An analysis of the adoption of International Financial
Reporting Standards by Small and Medium Entities: A Case Study in Kadoma - Abstract
-
The study focused on analysis of the adoption of IFRS by Small and Medium-sized Enterprises
in Kadoma. The objectives of this study were to; analyse the practical problems faced by SMEs
in preparation of financial reports that meet IFRS criteria, examine whether SMEs have
personnel equipped with knowledge and skills required to apply IFRS, evaluate the significance
of adoption of IFRS on the accessibility of SMEs to funding institutions and determine the
effects of adopting modern information technological systems in boosting the implementation
of IFRS in SMEs. The study was entirely dependent on past works of literature and secondary
data sources. Descriptive research design was utilised in the study. Data was collected from
fifty respondents through the use of questionnaires and the study discusses the suitability of
this tool in gathering data. The sample size of 50 was obtained through the use of stratified and
simple random sampling methods. Data collected was analysed through descriptive statistics,
and was presented on tables and graphs by utilising SPSS software version 20. The findings
indicated that information technological systems caused 70.4% of the variation in adoption of
IFRS and the relationship was statistically significant (B=0.704, P<0.05). The researcher found
that the size of the firm caused 67.4% of the variation in adoption of IFRS and the relationship
was statistically significant (B=0.851, P<0.05). The findings also highlighted that the
accessibility to capital markets or funding institutions contributed 51.4% of the variation in the
adoption of IFRS and the relationship was statistically significant (B=0.765, P<0.05). The
findings indicated that the working experience and the intellectual skills of the employees
contributed 61.3% of the variation in adoption of IFRS and the relationship was statistically
significant (B=0.613, P<0.05). The degree of education contributed 58.1% of the variation of
the adoption of IFRS and the relationship was statistically significant (B=0.784, P<0.05. The
study concluded that many SMEs were ignorant about IFRS for SMEs and they were not yet
ready to adopt the standards, however, they only practiced Cash Basis Accounting and Book
keeping. - Date
- 2023
- Publisher
- BUSE
- Keywords
- SMEs
- IFRS
- Supervisor
- Mr. Chiriseri
- Item sets
- Department of Accountancy
