The macroeconomic determinants of the adoption of IFRS for SMEs

Bonito, Ana Luísa Moedas; Pais, Cláudio

doi:10.1016/j.rcsar.2018.03.001

Cited by 46 publications

(54 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The SMEs significantly contribute to technological innovation in the economy, because the technological innovation is necessary for the SMEs to gain competitive advantage or survive in the globalized market as the term is mainly based on the perception of new markets (consumers). Various researchers [7,8,[40][41][42][43] indicate, technologically innovative activities are among influential factors that affect the SMEs' to gain sustainable competitive advantage and improve market survivability due to rapid technological changes and shorter product and technology lifecycles in the globalized era. As explained theoretically, technological innovation leads to shift the production function upward and increase the economic output.…”

Section: Innovation-utilization Of New Scientific Discoveriesmentioning

confidence: 99%

Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance

Prasanna

Jayasundara

Gamage

et al. 2019

Journal of Open Innovation: Technology, Market, and Complexity

231

107

View full text Add to dashboard Cite

In the era of economic globalization, small and medium enterprises (SMEs) are recognized as an engine of sustainable economic development in both the developed and developing world. In literature, three competitive challenges-the sustainability challenge, the global challenge and the technological challenge-faced by industrial entities in the current globalized economy, are categorized. Of them, this paper undertakes a systemic review of the literature covering the theme of SMEs and technology in order to identify how technological progress in the SMEs, correlates with SMEs survival improvement in the global competition. The review identified six driving forces-social capital, link with Multi-National Corporations (MNCs) and Transnational Corporations (TNCs), innovation, sharing and networking, information technology, and adoption of productivity-enhancing technology-influencing technological upgrade in the SMEs. The review also identified two conditions for successful technological adaptation in the SME sector-availability of technologically skillful workforce in the economy, and identification of opportunities of new technologies in the competition. These conditions could be viewed in the macro environment and emphasize the need for the economies' readiness towards SMEs' success.

show abstract

Section: Innovation-utilization Of New Scientific Discoveriesmentioning

confidence: 99%

Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance

Prasanna

Jayasundara

Gamage

et al. 2019

Journal of Open Innovation: Technology, Market, and Complexity

231

107

View full text Add to dashboard Cite

show abstract

“…Previous literature is focused on two groups of research. The first stream of research concentrates on the macroeconomic impact of IFRS adoption (Beneish et al, 2015;Bonito and Pais, 2018;El-Helaly et al, 2020), whereas the second investigates the effects of IFRS application on a microeconomic level, precisely on companies' levels (Ball, 2016;Weetman, 2018). The purpose of our study is to examine the influence between the adoption of IFRS and financial profitability on the sample of European companies.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Adoption of Latest Modifications of IAS 16 Influence on Company’s Profitability? Evidence from European Companies

Luty¹,

Petković²

2021

ERSJ

View full text Add to dashboard Cite

Purpose: This study aims to investigate the influence of applying IFRS on European companies' profitability. The research focuses on adopting the new IFRS 16, specifically the accounting treatment of leases. The new standard introduces revolutionary changes in the treatment of leasing contracts. Many companies have moved away from IFRS, so it is essential to check the impact of IFRS on other companies. Design/Methodology/Approach: The study includes an analysis of two periods, before and after implementing IFRS 16 (leasing). In the study, we focus on specific sectors of economic activity. We examine the distributions of individual variables and compare the medians using parametric and non-parametric tests. The survey results indicate whether the implementation of IFRS 16 negatively affected the results of the companies. Findings: The study proves that adopting new IAS 16 related to leases does not negatively influence companies' profitability than the previous treatment of this financial position within financial statements. This study confirms that European companies improve profitability by adopting new modifications of the IAS 16. Practical Implications: The study represents a motive for managers to accept new accounting treatments of leases that will create tangible value and generate further economic benefits. Originality/Value: We examined companies implementing new assumptions for the recognition of leasing. Contrary to the numerous voices of practitioners pointing to the negative effects of the implementation of IFRS 16, we showed that the implementation of IFRS 16 did not significantly change the profitability of companies. Thus, it can be indicated that the primary objective of introducing IFRS 16, to organize the recognition of company assets, has been met.

show abstract

“…The formulation of financial reporting policy that can meet the reporting needs of SMEs in Malaysia would give greater advantage in the SME sector as a whole and therefore, it is becoming significant to consider the cost and benefits of MPERS implementation. In addition, as mentioned by Pais and Bonito (2018), countries like Malaysia that permit or require the use of IFRS for listed companies and have a common legal system, can reduce the costs of developing their own financial accounting standard as with familiarity of the IFRS environment it implies a reduction in transaction costs as well. This is consistent with study by Isidro et al (2016) highlighted that other than institutional factor, adding more factors add little incremental explanatory power on the adoption of IFRS on SMEs.…”

Section: Problem Statementmentioning

confidence: 99%

“…Small and Medium Enterprises (SMEs) has becoming as part of majority in the business entities. Therefore, the role of SMEs in the economic development cannot be overemphasized as SMEs make significant contributions to the global trade and economic growth (Pais and Bonito, 2018;Chen, 2006). In ensuring that SMEs can scale up their operations specially to fulfilling their financial needs, hence maintaining proper accounts and generating meaningful financial statements are giving huge impact to their business.…”

Section: Introductionmentioning

confidence: 99%

Malaysia Private Entity Reporting Standard (MPERS) adoption for SMEs: Insights from Accounting Practitioners in Malaysia

Jamil

Ramli

Marzuki

et al. 2020

BER

View full text Add to dashboard Cite

Small and medium enterprises (SMEs) have very significant contribution to economic growth of the countries as more than 95% of companies worldwide and employment are represented by the SMEs industries. Therefore, in increasing the harmonization of reporting standard of SMEs, Malaysia is moving aggressively towards the efforts by introducing the Malaysian 105 Private Entity Reporting Standard (MPERS) for SMEs starting from 1 st January 2016 onwards. MPERS is seen to bring opportunities to the business as it is adoption of international standard that has been designed to fits the local needs and the customization to the Malaysian business environment could ensure comparability of the locals with the international business. Hence, this research attempt to 1) examine the perceptions of accounting practitioners on MPERS implementation and 2) identify the problems encountered in applying MPERS in SMEs. This study provides pioneering evidence on the problems of the practitioners encountered when applying the MPERS through the 176 questionnaires survey that have been distributed to the accounting practitioners that involve with MPERS implementation for SMEs in Malaysia. The insights and perceptions obtained highlighting new dimensions to the inherent problem such as issues of consistency and guidance in applying the MPERS with the cost-effective manner. Thus, the issues of differences in judgements among the practitioners become a phenomenon in relation to the application of MPERS for SMEs. The findings of this study are of interest to standard setters and SMEs stakeholders in Malaysia and other countries.

show abstract

The macroeconomic determinants of the adoption of IFRS for SMEs

Cited by 46 publications

References 43 publications

Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance

Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance

Does Adoption of Latest Modifications of IAS 16 Influence on Company’s Profitability? Evidence from European Companies

Malaysia Private Entity Reporting Standard (MPERS) adoption for SMEs: Insights from Accounting Practitioners in Malaysia

Contact Info

Product

Resources

About