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

This study examined the comparison between pre and post-adoption of IFRS based financial statements of listed SMEs in Nigeria. Data used were generated 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 analyzed the study data using one-sample Kolmogorov Smirnov test, descriptive statistics and Mann Whitney u-test. Findings from the study show that there is no significant difference between profitability and leverage ratios of IFRS and NGAAPbased financial statements of listed SMEs. Though further findings revealed that a significant difference exists amid market ratios prepared under IFRS and NGAAPbased financial statements of listed SMEs. The major implication of the study is that IFRS has a significant impact on market ratio. 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.