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SMES asked to adopt IFRS reporting rules

Kenyan Business Feed by Kenyan Business Feed
SMES asked to adopt IFRS reporting rules

NSE chief executive Geoffrey Odundo.

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NSE chief executive Geoffrey Odundo.

Small and Medium Sized Enterprises (SME) will be more attractive to investors and unlock their capital flows in the region if they improve their financial reports and disclosures.

To achieve this, the SMEs must embrace international financial reporting frameworks, where many are non-compliant, says Nairobi Securities Exchange chief executive Geoffrey Oduno.

“The main areas of non-compliance are around governance, and the requirements for financial reporting frameworks,” said Odundo

In December 1999, the Institute of Certified Public Accountants of Kenya adopted the international financial reporting standards (IFRS) as issued by the International Accounting Standards Board. IFRS for SMEs became effective in 2010.


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