The Relevance of International Financial Reporting Standards for Small and Medium-Sized Entities (IFRS for SMEs) in Swaziland (original) (raw)
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2020
Orientation: The International Financial Reporting Standards (IFRS) for small and medium-sized entities (SMEs) was adopted in South Africa in 2009 to reduce the complex burden of financial reporting for SMEs. Research purpose: The purpose of the article is to explore the insights of accounting practitioners a decade after introducing the IFRS for SMEs. Motivation for the study: The article increases the body of research into decision usefulness in relation to IFRS for SMEs, drawing attention to the possible benefits and challenges of the practical use of the IFRS for SMEs as an acceptable reporting framework. Research approach, design and method: The article uses prior literature on the application of IFRS for SMEs in South Africa to construct a structured questionnaire which was completed by 103 qualified accounting practitioners operating in South Africa. Main findings: Overall, the insights of accounting practitioners demonstrated reduced scepticism, as compared to previous resea...
The Suitability of International Financial Reporting Standards for Small and Medium-sized Entities
2011
South Africa adopted the International Accounting Standards Board’s (IASB) draft International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) in 2007 as Statement of Generally Accepted Accounting Practice for Small and Medium-sized Entities (Statement of GAAP for SMEs). In 2009, the final IFRS for SMEs was approved for use in South Africa and the Statement of GAAP for SMEs was withdrawn. 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, IFR...
2020
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.
Meditari Accountancy Research, 2022
Abstract Purpose: This paper aims to examine the perceptions of owner managers and accountants of small and medium sized entities (SMEs) on the users and their financial information needs of SME financial reporting. Methodology/ Research Approach: Postal questionnaire surveys with owners and accountants of SMEs were used to identify users and their financial information needs. In total, 1498 questionnaires were sent to SME owners, and accountants.. A total of 358 questionnaires were returned, generating 323 usable questionnaires. The management branch of stakeholder theory is used for the study which asserts that company management is expected to meet the expectations of those stakeholders who are more powerful than others. Results: The users of Sri Lanka SME financial information were limited to owner managers, banks and Department of Inland Revenue. Users and financial information needs of owner managers varied in relation to the size of the SME. Financial information are useful for making capital investment and planning decisions for owner managers regardless of the size of the SME. By sharing information with outside parties, disclosures can diminish information asymmetries between the firms and its stakeholders. The top three reasons for which owner managers use SME financial information are for planning purposes, estimating income tax liabilities, and taking marketing and pricing decisions. Implications: This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. Consequently, the findings of this paper make a valuable contribution to the work of practitioners such as local and international standards-setters and regulators who may be considering developing/revising financial reporting framework for SMEs either worldwide or in developing countries. Originality: Although SME financial reporting has attracted enormous attention in the recent accounting literature, academic research into SME financial reporting is scant. This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. The general purpose financial reporting model and the accounting standard IFRS for SMEs in particular would not be applicable to Sri Lankan SMEs unless it modifies to reflect the financial information needs of users of Sri Lankan SME financial information. Key words: Financial reporting; Small and medium sized entities (SMEs); Developing countries, IFRS for SMEs, Stakeholder theory
Journal of Accounting and Finance in Emerging Economies
This study aims to investigate the perceptions of accountants regarding the possible adoption of International Financial Reporting Standards (IFRS) for SMEs in Pakistan. IFRS for SMEs were issued by the IASB in 2009. The adoption of the IFRS for SMEs in Pakistan has been proposed by the Institute of Chartered Accountants of Pakistan (ICAP) and in 2015 the Securities and Exchange Commission of Pakistan (SECP) has approved the adoption of the 'International Financial Reporting Standard for Small and Medium Sized Entities. We conducted seven semi-structured interviews with the chartered accountants based in Multan that were providing accounting and consultancy services to various SMEs. The findings of the research confirmed the reasonable level of awareness among chartered accountants regarding IFRS for SME. Our respondents perceive high-quality comparable financial information as the most significant advantage of applying IFRS for SMEs whereas cost burdens on firms and lack of tra...
International Journal of Engineering Technologies and Management Research, 2019
The purpose of the study was to explore the extent to which Small and Medium Enterprises (SMEs) in the Cape Coast Metropolis (CCM) comply with International Financial Reporting Standards (IFRSs). The study further looked at firm attributes (size, profitability, audit type, internationality, type of SME, and leverage) that influence the level of SMEs’ compliance with IFRSs. The descriptive design was adopted for this study. The study sampled 89 SMEs within the metropolis, however, data from 67 medium scale enterprises were used. A self-constructed compliance index (CINDEX) checklist was the instrument used. Both descriptive and inferential statistics were used in analysing the data. The findings revealed that medium scale enterprises average level of compliance of IFRSs is 77.9%. Also, enterprise’s attributes such as types, profitability, and audit type are able to influence 70.6% of the variance in the level of enterprise’s compliance with IFRSs disclosure requirements. The study recommended that the National Board for Small Scale Industries (NBSSI) and the owner/managers of the various SMEs in the metropolis should liaise with Institute of chartered Accountant Ghana (ICAG) to organise regular training programmes, for accountants within the sector, intended to provide practical guide for compliance with the International Accounting Standard Board (IASB).
The adoption of International Financial Reporting Standards by many countries is fundamental to global accounting harmonization. However the reporting requirements were often criticized as being too comprehensive and not necessarily applicable to all levels of businesses, especially smaller businesses. As a result the International Accounting Standards Board developed an accounting framework for small and medium enterprises entitled IFRS for SMEs. Even though the IFRS for SMEs might be easier to apply, many commentators warned that the framework is still too complex. They also argue that the framework is a mere scaled-down version of IFRS and that the specific disclosure requirements of small and medium enterprises have not been taken into consideration in developing the framework. In August 2007, despite the afore-mentioned concerns, South Africa became the first country to formally adopt the IFRS for SME as an accounting framework. Whether the adoption of the IFRS for SMEs in Sout...