The macroeconomic determinants of the adoption of IFRS for SMEs
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....
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| Format: | Article |
| Language: | English |
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Universidad de Murcia
2018-07-01
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| Series: | Revista de Contabilidad: Spanish Accounting Review |
| Subjects: | |
| Online Access: | https://revistas.um.es/rcsar/article/view/353221 |
| _version_ | 1818752825976422400 |
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| author | Cláudio António Figueiredo Pais, Ph.D Ana Luísa Moedas Bonito |
| author_facet | Cláudio António Figueiredo Pais, Ph.D Ana Luísa Moedas Bonito |
| author_sort | Cláudio António Figueiredo Pais, Ph.D |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-18T04:57:38Z |
| format | Article |
| id | doaj.art-5ed0b83f69904a87bfe1140443715c4e |
| institution | Directory Open Access Journal |
| issn | 1138-4891 1988-4672 |
| language | English |
| last_indexed | 2024-12-18T04:57:38Z |
| publishDate | 2018-07-01 |
| publisher | Universidad de Murcia |
| record_format | Article |
| series | Revista de Contabilidad: Spanish Accounting Review |
| spelling | doaj.art-5ed0b83f69904a87bfe1140443715c4e2022-12-21T21:20:13ZengUniversidad de MurciaRevista de Contabilidad: Spanish Accounting Review1138-48911988-46722018-07-01212The macroeconomic determinants of the adoption of IFRS for SMEsCláudio António Figueiredo Pais, Ph.D0Ana Luísa Moedas Bonito1Accounting Department, Instituto Universitário de Lisboa (ISCTE – IUL), Lisboa, PortugalAccounting Department, Instituto Universitário de Lisboa (ISCTE – IUL), Lisboa, PortugalSmall 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.https://revistas.um.es/rcsar/article/view/353221IFRS for SMEsMacroeconomic factorsAccounting harmonization |
| spellingShingle | Cláudio António Figueiredo Pais, Ph.D Ana Luísa Moedas Bonito The macroeconomic determinants of the adoption of IFRS for SMEs Revista de Contabilidad: Spanish Accounting Review IFRS for SMEs Macroeconomic factors Accounting harmonization |
| title | The macroeconomic determinants of the adoption of IFRS for SMEs |
| title_full | The macroeconomic determinants of the adoption of IFRS for SMEs |
| title_fullStr | The macroeconomic determinants of the adoption of IFRS for SMEs |
| title_full_unstemmed | The macroeconomic determinants of the adoption of IFRS for SMEs |
| title_short | The macroeconomic determinants of the adoption of IFRS for SMEs |
| title_sort | macroeconomic determinants of the adoption of ifrs for smes |
| topic | IFRS for SMEs Macroeconomic factors Accounting harmonization |
| url | https://revistas.um.es/rcsar/article/view/353221 |
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