Adopting International Financial Reporting Standards for Small and Medium‐sized Enterprises

Chand, Parmod; Patel, Arvind; White, Michael M.

doi:10.1111/auar.12067

Cited by 28 publications

(39 citation statements)

References 19 publications

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“…Besides, several disadvantages and challenges of the implementation of the IFRS for SMEs adoption process were also reported by the researchers such as lack of trained personnel (Uyar & Güngörmüş, 2013;Kılıç et al, 2014), difficulty in understanding the complex and detailed nature of standards (Quagli & Paoloni, 2012;Kılıç et al, 2014), lack of knowledge (Kaytmaz Balsari & Varan, 2014), costly adoption process (Kılıç et al, 2014;Chand et al, 2015), costs arising from possible duplication of reporting , and training costs .…”

Section: Literature Reviewmentioning

confidence: 98%

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Adoption process of IFRS for SMEs in Turkey: Insights from academics and accountants

Kılıç¹,

Uyar²

2017

JAMIS

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In 2009, the International Accounting Standards Board (IASB) issuedInternational Financial Reporting Standards (IFRS) for Small and Medium-sized Entities (SMEs) as a simplified version of the full IFRS addressing the financial reporting needs of SMEs. Although IFRS for SMEs is still not required in this jurisdiction, Turkey was one of the first ones that have taken substantive steps towards adoption of IFRS for SMEs. The main purpose of this research is to investigate the perceptions of Turkish accountants, academicians, and auditors regarding the adoption process of IFRS for SMEs via in-depth interview methodology. The findings of the research confirmed the need for a stand-alone standard set for SMEs. The interviewees asserted that more simplification on IFRS for SMEs may hinder comparability of financial statements. While high-quality financial information will be the most important advantage of applying IFRS for SMEs, cost burdens on firms and lack of trained personnel will be the major obstacles for the implementation process.

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Section: Literature Reviewmentioning

confidence: 98%

“…They also suggested the submission of a simpler tier of IFRS for SMEs addressing the reporting needs of small businesses. Chand et al (2015) also determined that standard-setters in Fiji suggest some exemptions for micro-entities to make IFRS for SMEs more cost effective for them.…”

Section: Literature Reviewmentioning

confidence: 99%

Adoption process of IFRS for SMEs in Turkey: Insights from academics and accountants

Kılıç¹,

Uyar²

2017

JAMIS

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“…Based on IFRS principles, IFRS for SMEs is a high‐quality standard that requires a high level of knowledge and deep accounting skills. Several developing countries still face challenges in implementing this standard due to the lack of adequate accounting training, limited professional capacities, and high training costs that are major factors hindering IFRS for SMEs implementation (Chand et al, ; Samujh & Devi, ).…”

Section: Development Of Hypothesesmentioning

confidence: 99%

“…Given its principle‐based nature, IFRS for SMEs needs a well‐qualified and experienced accounting staff able to adequately interpret and apply professional judgments to this standard notably for some new requirements such as the recognition and measurement of deferred tax assets and liabilities under “uncertain tax positions” (IFRS for SMEs section 29) which lead to the rise of different interpretative issues (Chand et al, ; Ernst & Young, ). Consequently, SMEs may face difficulties to apply such incomprehensible‐nature requirements not dealt with under either full IFRS or domestic GAAP (Ernst & Young, ).…”

Section: Development Of Hypothesesmentioning

confidence: 99%

What Drives Developing and Transitional Countries to Adopt the IFRS for SMEs? An Institutional Perspective

Sellami¹,

Gafsi²

2018

J Corp Accounting Finance

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With the awareness of the socioeconomic importance of small- and medium‐sized enterprises (SMEs) and the growing demand for a high‐quality accounting framework for these businesses, the International Accounting Standards Board issued on July 9, 2009 a simplified version of financial reporting standards (IFRS for SMEs) to meet the specific needs of such entities. Recently, there is an increasing widespread acceptance of this standard around the world. While considerable effort has been made to explain the worldwide diffusion of full IFRS, still little empirical evidence on the factors influencing the IFRS for SMEs adoption has been undertaken. This study seeks to examine the institutional factors associated with the adoption of the IFRS for SMEs specifically in the context of developing and transitional economies. Based on a sample of 70 countries, the research results show that SMEs' importance, country's reliance on external funding, and external openness degree positively affect the IFRS for SMEs adoption. They reveal a negative effect of tax system and governance quality on this decision. However, education level and prior adoption of full IFRS are nonsignificant factors. These results are relevant to practitioners, SMEs' potential investors, standard setters, regulators, CPA firms, SMEs' managers, and policy‐makers. © 2018 Wiley Periodicals, Inc.

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“…Implementation of IFRS in the public sector implies application of accrual basis of accounting. Chand et al (2015) explained that diverse complications and controversial issues in the adoption of IFRS for Small and Medium-sized Enterprises (SMEs) have been reported by many jurisdictions, prompting them not to adopt this set of standards. Conversely many jurisdictions have adopted or are in the process of adopting IFRS for SMEs.…”

Section: Review Of the Literaturementioning

confidence: 99%

Analyzing the problems with the current adoption of IFRS in the companies among India, China, Germany, Russia and Kenya

Ombati¹,

Shukla²

2018

10.5267/j.ac

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Accounting information provides past and current financial information of an economic unit for business managers, potential investors, and other interested parties. Internally generated accounting information helps business managers with planning, controlling, and making decisions referred to as managerial accounting information. However, if the companies, which have adopted International Financial Reporting Standards (IFRS) globally, cannot generate the same information then the accounting practices need to be improved. For this purpose, the current study was performed with the objectives of measuring relationship between profitability and market capitalization and to analyze the challenges faced by listed firms of various countries in association with the implementation of IFRS. For this purpose, 15 companies were selected from 5 countries including India, China, Germany, Russia and Kenya. The secondary data regarding the correlation between profitability and market capitalization were analyzed to calculate the correlations. The primary data regarding the managers perception were analyzed with multiple regression method using SPSS-19 software to find out the company related variables, investors' related variables and government agency related variables responsible for problems in the current adoption of IFRS.

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Adopting International Financial Reporting Standards for Small and Medium‐sized Enterprises

Cited by 28 publications

References 19 publications

Adoption process of IFRS for SMEs in Turkey: Insights from academics and accountants

Adoption process of IFRS for SMEs in Turkey: Insights from academics and accountants

What Drives Developing and Transitional Countries to Adopt the IFRS for SMEs? An Institutional Perspective

Analyzing the problems with the current adoption of IFRS in the companies among India, China, Germany, Russia and Kenya

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