The study examines the effect of International Financial Reporting Standard (IFRS) on the performance of Small and Medium Enterprises. A study of selected companies. The researcher described the statement of the problem which includes high training cost of staff on IFRS, cost associated with employing the services of financial expert to redraft already financial statement of previous years and some SMEs still do not understand what options are available for IFRS for SMEs. Data extracted from questionnaires and oral interview from the selected companies. Objectives of the study includes to determine the level of awareness of IFRS guideline amongst SME operators in Nigeria, to examine the extent IFRS is adopted by small and medium scale enterprises and to ascertain the challenges of implementation of the IFRS guidelines for SMEs by Small and Medium Scale Enterprises. Primary data was extracted from both oral interview and questionnaires. Population size of the study was 116 chosen from accountants and financial expert. The sample chosen from the population is 90 in number. Data collected were analyzed using Z test inferential statistic while hypotheses formulated where testing using Chi-square. Result obtained shows that there is significant level of awareness of IFRS guidelines amongst SMEs operator in Nigeria, there are significant IFRS guidelines that have been adopted by SMEs and finally there is significant challenges face by SMEs in implementing. From the findings the researcher recommend that SMEs should endeavor to use the opportunity presented by the adoption of IFRS, there should be enlightenment campaigns on the potential effects of IFRS implementation by the regulatory authorities, IFRS should be included in the syllabus of accounting student in the tertiary institution.