Does the IASB know the needs of SMEs? A comparative analysis between the IFRS for SMEs and full IFRS due processes

Abstract

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). Nuestra investigación contribuye a la reducida literatura sobre ‘lobbying’ en la NIIF para las PYMES al analizar todas las cartas de comentario en el ‘due process’ (entre 2004 y 2012) y compararlas con los 97 proyectos las NIIF completas relacionados con las NIIF completas durante el mismo período de tiempo. Los resultados confirman que la participación de los preparadores es significativamente menor en el proceso de normalización contable internacional para las PYMES. Si bien esta participación reducida se ve compensada por una mayor participación de los auditores, los resultados también revelan que los auditores no coinciden con los intereses de los preparadores en el caso de las NIIF para las PYMES. En conclusión, el IASB encuentra una limitación de la Teoría Institucional (Meyer y Rowan, 1977) en el caso de la NIIF para las PYMES, llamando la atención sobre la necesidad de que el IASB realice análisis adicionales sobre las necesidades reales, no solo de usuarios específicos de la información financiera emitida por las PYMES, sino también de las propias PYMES. Finalmente, sugerimos análisis adicionales de las necesidades de las PYMES en los países en desarrollo, en línea con los pronunciamientos de la UNCTAD (2003).

Stakeholder’s Perception of Subsequent Goodwill Measurement: An Analysis of IASB Comment Letters

“…The content of the 193 comment letters was subsequently classified by type of stakeholder (academics, auditors, investors, standard-setters, preparers, regulator/securities, and others), following the methodology of other studies (e.g. Anantharaman, 2015;Bautista-Mesa, Muñoz-Tomás and Horno-Bueno, 2019;Giner and Arce, 2012) and the classification of the IFAC (2008). In the particular case of preparers, they were then classified by activity sector in order to identify differences in perceptions by sector.…”

Perspectives of accounting professionals about the adoption of IFRS for SMEs: the case of Romania

“…The lack of interest of SMEs in adopting the standard may be a consequence of how the IASB developed the standard. Furthermore, prior research by Gassen (2017), Sellami and Gafsi (2018) and Bautista-Mesa et al . (2019) has shown that SMEs are not at all motivated to adopting an international standard.…”

“…The lack of interest of SMEs in adopting the standard may be a consequence of how the IASB developed the standard. Furthermore, prior research by Gassen (2017), Sellami and Gafsi (2018) and Bautista-Mesa et al (2019) has shown that SMEs are not at all motivated to adopting an international standard. Mainly because these types of entities do not have international activities and are not interested in seeking foreign investors, being part of an international group or becoming publicly listed (Aboagye-Otchere and Agbeibor, 2012;Bautista-Mesa et al, 2019;Brouwer and Hoogendoorn, 2017;Gassen, 2017;Sellami and Gafsi, 2018).…”

“…(2019) has shown that SMEs are not at all motivated to adopting an international standard. Mainly because these types of entities do not have international activities and are not interested in seeking foreign investors, being part of an international group or becoming publicly listed (Aboagye-Otchere and Agbeibor, 2012; Bautista-Mesa et al ., 2019; Brouwer and Hoogendoorn, 2017; Gassen, 2017; Sellami and Gafsi, 2018).…”