This paper studies the readiness of small and medium scale enterprises (SME) in Lagos State, Nigeria for the adoption of International Financial Reporting Standards (IFRS) and the likely challenges that may be encountered in the adoption process. The work employed a descriptive survey design and data were collected from primary source. Findings show that a major factor why IFRSs would be adopted by Nigeria is because other countries have adopted them. Again results show that the IFRS for SMEs adoption process is currently confronted with diverse challenges that may prevent the effective adoption and implementation of IFRS for SMEs in Nigeria in 2014 if they are not addressed with promptness. This study recommends that the curriculum of both secondary schools and tertiary institutions should be restructured in order to be IFRS compliant and the cost of acquiring IFRS education should also be subsidized especially for small firms by major accounting regulatory bodies in Nigeria
Keywords: Adoption Process, International Financial Reporting Standards, Small and Medium Scale enterprises.
