How Do Preparers Perceive Costs and Benefits of IFRS for SMEs? Empirical Evidence from the Netherlands

Litjens, Robin; Bissessur, Sanjay; Langendijk, Henk P.A.J.; Vergoossen, R.G.A.

doi:10.1080/17449480.2012.720875

Cited by 42 publications

(32 citation statements)

References 32 publications

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“…Financial reporting of SMEs faces undue burdens and disproportionate reporting costs (Litjens et al, 2012). Due to these difficulties, differential reporting for SMEs emerged, based on the idea that different types of entities are subject to different financial reporting requirements, designed to achieve economic and social importance, meet users" needs and achieve more benefits than costs.…”

Section: Introductionmentioning

confidence: 99%

SMEs’ Financial and Differential Reporting- A Review of Publications

Mkasiwa

2014

ijafr

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The purpose of this paper was to evaluate publications about Small and Medium Enterprises" (SMEs) financial and differential reporting and formulate suggestions for its progression. Based on desk-based research, the paper employed a literature-based analysis and critique of 100 selected publications about financial and differential reporting for SMEs. The paper only considered selected studies over the period 1985 to 2014. All financial and differential reporting literature of SMEs that was publicly available was incorporated (see also, Eierle and Schönefeldt, 2010). This method was employed because of the scattered nature of articles on financial and differential reporting for SMEs. From this, a descriptive analysis of the characteristics of the literature was discussed. Thereafter, a conceptual analysis of the reviewed publications was conducted to provide the basis for suggestions for possible future directions of this body of research. The descriptive analysis highlighted that among the research studies reviewed several interesting patterns emerged concerning SMEs" financial and differential reporting research. Contrary to what had been argued in previous reviews, studies of developing countries had started to increase in this body of research since 2009. When the focus of the literature was considered, the "scrutinization of differential reporting" was the area of most focused interest especially after the release of IFRS for SMEs. The main implications of this paper are that, the focus of published literature had been in line with IASB"s project of the development of IFRS for SMEs. This paper provides several important insights in order to highlight policy development, especially to the steering bodies such as IASB. Moreover, the paper identifies possible areas for further research.

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Section: Introductionmentioning

confidence: 99%

SMEs’ Financial and Differential Reporting- A Review of Publications

Mkasiwa

2014

ijafr

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“…On the other hand, there are much criticism in the world concerning its arrangement and several authors point out the difficulty of finding the comparability intended by the new standard (Herman, 2010;Neag et al, 2009;Pacter, 2009). Other authors criticize the adverse cost-benefit ratio of this standard (Neag et al, 2009;Wright et al, 2012;Litjens et al, 2012) and also the negative impact of the need for accounting education compatible with the new standard, something which requires qualification for accounting assessment at fair value (Herman, 2010;Bertoni & De Rosa, 2010;Wright et al, 2012;Lenormand, Poulard, & Touchais, 2012). Besides, there is criticism related to the strong culture of using statements with a view to mere fiscal record by SMEs (Lenormand et al, 2012).…”

Section: Ifrs For Small and Medium-sized Entitiesmentioning

confidence: 99%

“…However, it was also possible to observe, in the literature, some doubts about the need to establish an international accounting standard for SMEs, among them: (i) disproportionate implementation costs of a new standard (Neag, Masca, & Pascan, 2009;Wright et al, 2012;Litjens, Bissessur, Langendijk, & Vergoossen, 2012); (ii) technical capacity of SME accountants and the other stakeholders regarding the interpretation and opinion on standards based on concepts and principles (Herman, 2010;Bertoni & De Rosa, 2010;Wright et al, 2012;Lenormand, Poulard, & Touchais, 2012); (iii) need for comparability of financial statements (Herman, small and medium-sized entities (CPC-SMEs) in Brazil and the cost of credit granted by financial institutions?…”

Section: Introductionmentioning

confidence: 99%

Adoção do Padrão Contábil Internacional nas Pequenas e Médias Empresas e seus Efeitos na Concessão de Crédito

Riva

Salotti

2015

Rev. contab. finanç.

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This research examines the relationship between the adoption of the international accounting standard by small and medium-sized entities in Brazil and the cost of credit granted by financial institutions. The literature about this subject discusses accounting regulation as a response to the existence of environments having information asymmetry and the Disclosure Theory studies the phenomenon of accounting disclosure, from the viewpoint of its causes and effects. The International Accounting Standards Board (IASB) suggests that an accounting standard with higher information quality tends to reduce the funding cost for small enterprises and, thus, this paper has as its main aim investigating whether the adoption of the international accounting standard has caused some effect on the cost of banking credit. The investigation was conducted through a theoretical and empirical approach, where the statistical analyses involved a sample of 179 enterprises subject to the Brazilian Technical PronouncementAccounting for Small and Medium-Sized Entities (CPC-SMEs), which underwent descriptive analysis, sample means testing, panel data analysis, and quantile regressions, with data from financial statements for three years (2009 to 2011). Evidence suggests a weak association between measures of the accounting information quality (disclosure and exposure of the adoption of the accounting standard based on the CPC) and the cost of banking credit for these enterprises. However, such evidence did not prove to be consistent over time and, furthermore, through regression analysis, the variables were not significant. So, it is possible to observe only a slight influence of accounting information in the sector under analysis, at least at this very first moment of changes in the accounting standards, on the cost of banking credit. Thus, this study contributes to examine the relationship between accounting information quality and the cost of banking credit among small and medium-sized entities.

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“…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). Nevertheless, despite some prior studies having analysed similarities and differences between the IFRS for SMEs and certain accounting settings -namely, the EU Accounting Directives (EFRAG, 2010), local GAAP (Albu et al, 2010;Buculescu & Velicescu, 2014;Cisi, 2008;EFAA, 2010;Girbina et al, 2012), and full IFRS as well …”

Section: Introductionmentioning

confidence: 99%

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

Valentinetti

Rea

Basile

2016

ijafr

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The aim of this paper is to assess the differences between the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) requirements and national financial reporting practices. For this purpose, the IASB's checklist was applied to a sample of financial statements prepared in Italy by non-listed manufacturing companies. The results reveal the major differences existing in the presentation of financial statements, as well as in narrative disclosure practices in management commentary and notes. Furthermore, econometric analysis suggests that the differences are influenced by certain exploratory ISSN 2162-3082 2016 factors, namely, profitability, leverage, size and parent company relationship. This study offers new insights into the roles of certain exploratory factors that are likely to influence the movement towards the application of the IFRS for SMEs. International Journal of Accounting and Financial Reporting

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How Do Preparers Perceive Costs and Benefits of IFRS for SMEs? Empirical Evidence from the Netherlands

Cited by 42 publications

References 32 publications

SMEs’ Financial and Differential Reporting- A Review of Publications

SMEs’ Financial and Differential Reporting- A Review of Publications

Adoção do Padrão Contábil Internacional nas Pequenas e Médias Empresas e seus Efeitos na Concessão de Crédito

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

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