The 2012 Review of IFRS for SMEs: Possible Responses from the Fiji Institute of Accountants (2024)

Procedia Economics and Finance, 2013

On 9 July 2009, the International Accounting Standards Board (IASB) issued the International Financial Reporting Standard for Small and Medium Sized Entities ("IFRS for SMEs") which aims to provide a financial reporting framework for SMEs falling within its scope. It is a matter for authorities in each jurisdiction to decide which entities are permitted or required to apply IFRS for

Small and medium-sized entities (SMEs) represent more than 95% of companies worldwide and account for more than 65% of employment. As a move towards SME harmonization, in 2009 the International Accounting Standards Board (IASB) issued the International Financial Reporting Standards (IFRS) for SMEs. Due to the lack of studies on adoption of IFRS for SMEs, we analyze the relationship between macroeconomic factors and countries' decision to adopt IFRS for SMEs. Based on a sample of 84 adopters and non-adopters of IFRS for SMEs, both developed and developing countries, we find evidence that countries without a national set of financial accounting standards for SMEs, with experience of applying IFRS and a common law legal system are more likely to adopt IFRS for SMEs. These results may be due to low transaction costs, the importance of having some knowledge of IFRS reporting given its complexity and belonging to IFRS based countries facilitating adoption of IFRS for SMEs. Additionally, we find that European Union (EU) member countries are less likely to adopt the standard. Knowledge of macroeconomic factors affecting the decision to adopt IFRS for SMEs is useful for the various entities that define international accounting harmonization, such as the IASB, regulators and international accounting firms, since this information can help them to promote worldwide adoption of the standard. Las pequeñas y medianas empresas (pymes) representan más del 95% de las empresas de todo el mundo y contabilizan más del 65% del empleo. Como paso hacia la armonización de las pymes, en 2009 el International Accounting Standards Board (IASB) emitió las International Financial Reporting Standards (IFRS) para las pymes. Debido a la falta de estudios sobre la adopción de las IFRS por las pymes, analizamos la relación entre los factores macroeconómicos y la decisión de los países de adoptar las IFRS para las pymes. Con base en una muestra de 84 adoptantes y no adoptantes de las IFRS para las pymes, tanto países desarrollados como en vías de desarrollo, encontramos evidencia de que los países sin un conjunto nacional de normas de contabilidad financiera para las pymes, con experiencia en aplicar las IFRS y un sistema legal de derecho común son más propensos a adoptar las IFRS para las pymes. Estos resultados pueden deberse a los bajos costos de transacción y la importancia de tener cierto conocimiento de los informes IFRS dada su complejidad y pertenencia a los países basados en las IFRS, lo que facilita la adopción de las IFRS por las pymes. Además, encontramos que los países miembros de la Unión Europea (UE) tienen menos probabilidades de adoptar la norma. El conocimiento de los factores macroeconómicos que afectan a la decisión de adoptar las IFRS para las pymes es útil para las diversas entidades que definen la armonización contable internacional, como el IASB, los reguladores y las empresas contables internacionales ya que esta información puede ayudarlos a promover la adopción mundial de la norma.

Piccola impresa:= …, 2011

This paper studies the Impact of the Mandatory adoption of International Financial Reporting Standards (IFRS) the small and medium scale enterprises (SME) in Lagos State, Nigeria. The studyused a descriptive survey design and primary source of data were also used. The study shows that adopting IFRS is crucial to SMEs since it aids the comparability of financial reporting. IFRS is perceived to be not just relevant but also a core requirement to competing in a globalized village by the SMEs.

Journal of Modern Accounting and Auditing, 2015

wseas.us

Abstract:-The issue of International Financial Reporting Standards (IFRS) implementation is of a great interest for researchers, pratitioners and reglementary bodies. The IFRS for Small and Medium-sized Entities (SMEs) was issued in July 2009 and currently strategies are ...

This study examined the comparison between pre and post-adoptionof IFRS based financial statements of listed SMEs in Nigeria. Data used weregenerated from the annual report of the sampled listed SMEs on Nigerian stock exchange considering the period 2012-2015. The study used Return on Capital Employed (ROCE), Return on Equity (ROE), Debt to Equity (D/E) and Earnings per Share (EPS) as a proxy for measuring the profitability, liquidity and market ratios of the sampled SMEs. We analyzedthe study data usingone-sample KolmogorovSmirnovtest, descriptive statistics and Mann Whitney u-test. Findings from the study showthat there isno significant difference between profitability and leverage ratios of IFRS and NGAAP-based financial statements of listed SMEs. Though further findings revealed that asignificant difference existsamidmarket ratios prepared under IFRS and NGAAP-based financial statements of listed SMEs. The major implication of the study is that IFRS has a significantimpact on ma...

This study provides evidence, using exploratory research in KwaZulu-Natal, as to the perceptions of users and accounting practitioners regarding the preferred form and content of IFRS for SMEs. The results indicate that financial statements based on a simplified version of IFRSs are the preferred form for financial reporting for SMEs. With regards to the content of differential reporting, the study found that the while certain standards were considered essential for SMEs (IAS 7, IAS 8, IAS 19 and IAS 20) and others were considered not essential for SMEs (IAS 27, IFRS 3 and IFRS 5), overall there was support for recognition and measurement concessions. This research thus provides some support for the IASB's IFRS for SMEs.

J Soc Sci, 2011

The inconsistent accounting practices found in different parts of the world have historically fascinated accounting researchers over the years (Mueller 1965: 386; Lin and Wang 2001: 263; Gujarathi 2008: 95). A number of possible explanations for discrepancies in connection with ...

Foreign trade: Economics, Finance, Law

Introduction. Small businesses play an impor­tant role in ensuring the economic stability of Ukraine, but during the war they are in a difficult situation and need support. Problem. For small enterprises, overcoming existing problems is possible thanks to cooperation with European companies, investors, counterparties, international financial organizations, entering foreign markets, attracting capital, participating in grant projects, startups, etc., but this requires a transition to international accounting standards and the transformation of financial reporting. The aim of the article is to highlight the peculiarities of the transition of small business enterprises to international accounting and reporting standards and to find practical recommendations for improving the transformation of financial reporting. Methods. During the research, general scientific and special methods were used, in particular: induction, deduction, comparative analysis, synthesis, generalization, grouping,...