CHALLENGES OF FINANCIAL REPORTING IN SMALL SCALE BUSINESSES IN GHANA.

Abstract

The vast majority of Ghana's companies are small and privately owned; audit could be argued that IFRS are not relevant to their needs or to their users. There is however, the need as corporate Ghana to find appropriate means to take stock of what we have and to enable SME's to provide information to interested parties.All business entities operate in environment and depend on it one-way or the other. As part of their social responsibility, there is a need for the organizations to report on their activities to enable society to judge their actions. This position has influenced most countries and international organizations in the world to look for means to make SME's more responsive to information needs of interested parties. The developed countries are searching for ways to bring SME's to the main stream of financial reporting. Therefore, the findings will assist the SME's to voluntarily comply conscious by law to prepare financial reports annually.