A Strategic Model for IFRS Adoption and Implementation among Mid-Tier Enterprises in West African Economies
Abstract
The adoption and implementation of International Financial Reporting Standards (IFRS) have become increasingly essential for enhancing financial transparency, comparability, and investor confidence across global markets. However, in many West African economies, mid-tier enterprises those larger than microenterprises but smaller than large corporations face significant barriers in transitioning to IFRS. These challenges include limited technical expertise, inadequate regulatory enforcement, resistance to change, and high co mpliance costs. This study proposes a Strategic Model for IFRS Adoption and Implementation tailored to the unique realities of mid-tier enterprises in West Africa. The model integrates capacity-building mechanisms, stakeholder collaboration frameworks, phased compliance pathways, and digital financial reporting tools. Drawing on case studies, regulatory analyses, and consultations with financial practitioners in Nigeria, Ghana, and Côte d'Ivoire, the model emphasizes a multi-tiered strategy. It begins with institutional support and awareness campaigns, followed by the development of context-specific IFRS training modules. The model also encourages public-private partnerships to subsidize adoption costs and promote sustainable integration of IFRS into existing financial practices. Furthermore, the model introduces a phased implementation roadmap, allowing enterprises to adopt IFRS incrementally beginning with key standards such as revenue recognition (IFRS 15) and financial instruments (IFRS 9), before progressing to more complex requirements. Digital transformation is a key enabler in this strategic model, offering cloud-based platforms for automated reporting, audit trails, and real-time compliance tracking. By reducing the manual burden of IFRS reporting and enabling seamless regulator-enterprise communication, digital tools improve both efficiency and accuracy. Preliminary findings indicate that when mid-tier enterprises receive targeted support, they are more likely to embrace IFRS, leading to improved financial governance, investor confidence, and cross-border funding opportunities. This model serves as a policy guide for regulatory bodies, accounting associations, and enterprise support organizations across West Africa. Its implementation has the potential to standardize financial reporting, enhance economic integration in the ECOWAS region, and improve the global competitiveness of mid-tier enterprises.
How to Cite This Article
Samson Oladele Dare, Joshua Oluwagbenga Ajayi, Onyeka Kelvin Chima (2022). A Strategic Model for IFRS Adoption and Implementation among Mid-Tier Enterprises in West African Economies . International Journal of Multidisciplinary Evolutionary Research (IJMER), 3(1), 48-64. DOI: https://doi.org/10.54660/IJMER.2022.3.1.48-64