Open AccessFair Value Accounting: Implementation Challenges Facing Small and Medium-Sized Entities in the Agricultural Sector
Author(s) -
Joseph Kwasi Agyemang,
Owusu Acheampong,
Wiafe Nti Akenten
Publication year - 2018
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v8i4.13643
Subject(s) - fair value , accounting , relevance (law) , business , audit , value (mathematics) , agriculture , international financial reporting standards , political science , law , ecology , machine learning , computer science , biology
Nowadays, the relevance of fair value in financial reporting is gaining impetus and recent discussions are moving in the trend of full fair value reporting. Small and medium-sized entities are not ignored in this instance. The move to new reporting standards results in various challenges for different interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector with evidence from regulatory bodies in Ghana. The study established that there is lack of methodological relationship between existing local laws and IFRS and absence of involvement of regulatory bodies in financial reporting standards setting. In light of these challenges, the study recommends involvement of regulatory bodies in standard setting and consideration should also be given to local laws when setting international standards.