Meter Asset Providers' Adoption of Ifrs for Smes in the Nigerian Electricity Supply Industry

Abstract

Financial reporting has been an avenue for good accountability of an organisation, in which small and medium-scale enterprises cannot be left out, for standard representation and disclosures. This study was conducted to examine the MAP's financial reporting according to the IFRS for SMEs and its implications. A survey research design, utilising a structured questionnaire, was employed on a population of 99 recognised MAPs, with a sample size of 25, employing convenience and cluster random sampling techniques. For each of the 25 selected MAPs, five questionnaires were distributed to the finance and audit department staff. A total of 125 questionnaires were distributed, but only 105 were returned. Data were analysed using both descriptive and inferential statistics, with the application of z-score for the inferential statistics, indicating significant results in the adoption, benefits of adoption, and challenges of adoption of IFRS for SMEs by MAPs in the NESI. Conclusively, SMEs in the industry should be encouraged to adopt the standard in their financial reporting for enhanced credibility,  comparability, and quality presentation of their financial statements. The necessary regulatory bodies in Nigeria should enforce the adoption and application of the IFRS for SMEs in financial statements reporting to enhance uniformity, comparability, qualitative presentation, and accountability.