Countries’ adoption of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) – early empirical evidence

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

“…For instance, Austria, Belgium, Italy, Finland, France, and Germany have become the major opponents of the IFRS for SMEs (Bohusova & Blaskova, 2012). The most significant supporters of the IFRS for SMEs in the EU are the United Kingdom and Ireland where regulatory forces between tax accounting and financial accounting are minimal or non-exist Kaya & Koch, 2015). While the developed nations that have their own accounting bodies or local GAAP have generally ignored the IFRS for SMEs, a significant amount of developing nations have accepted and applied it.…”

“…Furthermore, governments, especially in countries that have limited domestic financial resources, want their domestic businesses to expand internationally and to access foreign financial resources (Walton, 2011). The decision to adopt IFRS for SMEs enables a developing country to signal to creditors and international investors that it is willing to apply a high-quality and internationally accepted financial reporting standards fostering inflows of capital from other jurisdictions Kaya & Koch, 2015). In order to be competitive in international capital markets, regulators of emerging nations are more willing to take timely measures to harmonize their financial reporting practices with globally accepted financial reporting standards.…”

“…In Europe, different jurisdictions held different opinions regarding the adoption of the IFRS for SMEs. The significant link between taxation and capital maintenance rules in certain EU member countries makes the application of IFRS for SMEs burdensome for entities by modifying existing requirements or duplicating reporting systems (Kaya & Koch, 2015). For instance, Austria, Belgium, Italy, Finland, France, and Germany have become the major opponents of the IFRS for SMEs (Bohusova & Blaskova, 2012).…”

Is Financial Reporting in the SME Sector Moving towards Transparency? The Evidence from Poland

“…International studies on a group of 128 countries indicate that a much greater tendency to adopt IFRS for SMEs exists among countries which lack capabilities to develop their own local GAAP and those whose SME sector entities were previously required to use full IFRS (Kaya & Koch 2015). As a result of these studies, serious flaws in the standards have been disclosed and so they were not approved by the European Commission.…”

Differences between National Reporting Practices and IFRS for SMEs Presentation and Disclosure Requirements: Evidence from Italy

“…The debate around the new standard involves several factors, including: the comments on the IASB's Discussion Paper (Evans et al, 2005) and the Exposure Draft ‗IFRS for Small and Medium-Sized Entities' (Di Pietra et al, 2008); the different perspectives of acceptance among users, preparers and European Countries (Quagli & Paoloni, 2012); and the factors influencing countries' adoption of the IFRS for SMEs (Kaya & Koch, 2015). A number of contributions have referred to country-specific perspectives, such as those of the Czech Republic (Albu et al, 2013;Nerudova & Bohusova, 2008;Pàlka & Svitàkovà, 2011), Estonia (Alver et al, 2014), Germany (Eierle & Haller, 2009;Kreipl et al, 2014), Ghana (Aboagye-Otchere & Agbeibor, 2012), Greece (Mandilas et al, 2010) Italy (Baldarelli et al, 2007;Cisi, 2008), the Netherlands (Litjens et al, 2012), Romania (Albu et al, 2010;Gîrbină et al, 2012), South Africa (Schutte & Buys, 2011;Stainbank, 2008;van Wyk & Rossouw, 2009), Spain (Milanés Montero et al, 2011), Turkey (Arsoy et al, 2007;Atik, 2010;Kiliç et al, 2016;Turegun & Kaya, 2014), the United Arab Emirates (Kumar, 2014) and the USA (Jermakowicz & Epstein, 2010).…”