SME’s Views on the Adoption and Application of “IFRS for SMEs” in Turkey

Atik, Asuman; Ph.D.,

doi:10.35808/ersj/297

Cited by 13 publications

(8 citation statements)

References 6 publications

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“…A surprising finding is that Muslim entrepreneurs again rarely compile the Statement of Owners' Equity. This result is consistent with Atik (2010), which also finds that the statement of owners' equity is the least frequently prepared statement. Table 6 above shows that most of the reports presented by Muslim entrepreneurs are balance sheets and income statements.…”

Section: Types Of Financial Statement Presentedsupporting

confidence: 89%

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

Muslichah¹,

Sunarto²,

Kusnanto³

et al. 2020

jabminternational

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This study aims to discuss the adoption of financial reporting and accounting standards for small-medium enterprises (SMEs) by Muslim entrepreneurs. A structured questionnaire was used to collect quantitative data from the SME owners. 214 Muslim owners of SME businesses participated in the survey. The results show that only a few Muslim entrepreneurs prepared financial reports regularly. The main reason for preparing the statement is for calculating tax, borrowing money, and decision making. An unexpected finding from this study is that most of the Muslim owners are unaware of Standard for SMEs. Users of SME financial reports include tax authority, banks, and owners, or shareholders. This study enriches the financial reporting studies by examining the accounting standards for SMEs in a Muslim dominated country. The findings of this study also have implications for the Institute of Indonesia chartered accountants (IICA) as standard setter. IICA must routinely disseminate these standards to SMEs and also assist them in preparing financial reports

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Section: Types Of Financial Statement Presentedsupporting

confidence: 89%

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

Muslichah¹,

Sunarto²,

Kusnanto³

et al. 2020

jabminternational

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“…Therefore, studying the determinants of countries' adoption of new standards contributes to an improved understanding of the adoption process. Eierle and Haller (2009) in Germany, Atik (2010) and Kiliç et al (2016) in Turkey studied determinants and tried to determine the impact of the characteristics of SMEs on the adoption of IFRS for SMEs. To our knowledge, only Kaya and Koch (2015), Bonito and Pais (2018), Sellami and Gafsi (2018) and Zahid and Simga-Mugan (2019) have examined, which factors influence countries' adoption of IFRS for SMEs.…”

Section: Introductionmentioning

confidence: 99%

Cross-country determinants of IFRS for SMEs adoption

Damak-Ayadi

Sassi

Bahri

2020

JFRA

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Purpose The purpose of this study is to identify the influence of environmental and institutional factors on the adoption of the International Financial Reporting Standard for small and medium-sized entities (IFRS for SMEs). This study used the neo-institutional theory and the economic theory of networks to explain why countries choose to adopt IFRS for SMEs. Design/methodology/approach This study is based on logistic regression analysis to investigate 177 countries, including 77 jurisdictions that adopted IFRS for SMEs between 2009 and 2015. Findings The findings confirm that the adoption of IFRS for SMEs is significantly related to law enforcement quality, culture, trading networks and economic growth. At the institutional level, coercive and normative isomorphism was found to be positively associated with IFRS for SMEs adoption. The results show also that the quality of the audit has no significant effect on the adoption of IFRS for SMEs. However, the joint effect of the quality of audit and quality of law enforcement is significantly related to the adoption of IFRS for SMEs. Practical implications The study contributes to a better understanding of the factors influencing the implementation of IFRS for SMEs standard across the globe and could be used to predict a country’s decision to adopt this standard. Originality/value This study contributes to the literature on international accounting harmonization by examining both environmental and institutional factors that influence the adoption of IFRS for unlisted private companies.

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“…In contrast to these results, Collis and Jarvis (2000) and Sian and Roberts (2009) found that planning was one of the less important uses of financial statements in small entities from the UK. Pricing, seen as moderately important in this study, was found by Carsberg, et al (1985) and Atik (2010) to be the least important use of financial statements in internal decision-making of SMEs in the UK and Turkey respectively. Directors pay and staff pay, seen as least important in the present study, were found by Barker and Noonan (1996) (Ireland); Carsberg, et al (1985) (the UK) and Collis and Jarvis (2000) (the UK) to be important uses of financial statements by owners of SMEs.…”

Section: Taxation Knowledgesupporting

confidence: 55%

“…Various studies have reported lenders, and in particular banks, to be among the principal external users of SMEs' financial information (Atik, 2010;Joshi & Ramadhan, 2002;Rennie & Senkow, 2009;Sian & Roberts, 2006;United Nations Conference on Trade and Development, 2009). Banks are the main source of finance for SMEs and to tap into them SMEs commonly prepare financial reports for "borrowing" purposes.…”

Section: Lenders and Bankersmentioning

confidence: 99%

Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

Jadamba¹

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<p>This study examines three important aspects of financial reporting practice of Small and Medium sized Entities (SMEs) in developing economy. First, the study investigates the existing reporting practices of SMEs in Mongolia. Second, the study considers the expected impact for Mongolian SMEs of adopting the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). Third, the study examines the relationships between the economic characteristics of SMEs and both their reporting practice and the expected impact of adoption of the IFRS for SMEs. The study adopts a mixed method approach with a quantitative survey questionnaire and qualitative semi-structured interviews. The study developed a survey questionnaire and obtained 102 responses: 67 responses from employee account preparers of SMEs and 35 responses from accounting practitioners of Public Accounting Firms (PAFs) engaged with SMEs. The results of the survey were analysed using a range of non-parametric tests and Ordinary Least Squares (OLS). The qualitative semi-structured interviews were carried out with eight standard-setters, educators and information users and analysed using Nvivo. Overall, the research findings suggest that in Mongolia there is a low level of compliance with international financial reporting standards. It appears that preparers and users perceive a low level of net benefits from compliance. Surprisingly, the results indicate that the economic characteristics of SMEs do not appear to influence their reporting practice. Adoption of the IFRS for SMEs is expected to increase the level of compliance by SMEs.</p>

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SME’s Views on the Adoption and Application of “IFRS for SMEs” in Turkey

Cited by 13 publications

References 6 publications

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

Cross-country determinants of IFRS for SMEs adoption

Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

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