Browsing by Subject "IFRS for SMEs"

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    Does the IASB know the needs of SMEs? A comparative analysis between the IFRS for SMEs and full IFRS due processes
    (2019) Bautista-Mesa, Rafael; Muñoz-Tomás, Juan María; Paz Horno-Bueno, María
    Our research contributes to the limited literature on lobbying in accounting standards for SMEs by analysing all comment letters in the due process for the IFRS for SMEs (from 2004 to 2012) and comparing them to all of the 97 IASB’s projects related to full IFRS during the same period of time. Results confirm that the participation of preparers is significantly lower in the international accounting standardisation process for SMEs. Although this reduced participation is compensated by a higher participation of auditors, results also reveal that auditors do not match the interests of preparers in the case of the IFRS for SMEs. In conclusion, the IASB finds a limitation of the Institutional Theory (Meyer and Rowan, 1977) in the case of the IFRS for SMEs, drawing attention to the need of IASB for conducting further analysis about the real preferences, not only of specific users of the SMEs’ financial information, but also of SMEs. We finally suggest the relevance of the analysis of the needs of SMEs in developing countries, in line with the pronouncements of UNCTAD (2003).
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    The macroeconomic determinants of the adoption of IFRS for SMEs
    (2018) Bonito, Ana; Páis, Claudio
    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 macroeco- nomic 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.