Investigating the Necessity of Implementing and Applying " IFRS for Small and Medium Enterprises" in Iran

Document Type : Research Paper

Authors

1 Associate Professor of Accounting, Faculty of Management and Accounting, University Of Tehran(Farabi Campus). Iran.

2 Assistant Professor of Accounting, Faculty of Management and Accounting, University Of Tehran(Farabi Campus. Iran

3 Associate Professor of Accounting, Faculty of Accounting, University of Qom. Iran

4 PhD Student in Accounting, University of Tehran (Farabi), Iran

Abstract

The main objective of this study is to investigate the need for the adoption of specific financial reporting standards for small and medium-sized enterprises to achieve a favorable picture of the financial situation, financial performance and financial flexibility of small and medium business units in Iran. This research was conducted through interviewing experts, preparing hypothetical financial statements and conducting surveys using a questionnaire, and compilers of accounting and auditing standards, seeking to examine whether small and medium enterprises in Iran Do you need specific standards? Will adoption of international financial reporting standards for small and medium enterprises in Iran be necessary? This research is applied in terms of purpose and in terms of data gathering method. The results show that small and medium sized business units need financially for accounting and financial reporting, and the adoption of international financial reporting standards for small and medium enterprises in Iran is necessary. The results also indicate a significant and positive relationship between the adoption of International Financial Reporting Standards for small and medium enterprises in Iran and the improvement of the qualitative characteristics of accounting information (presentation and disclosure, reliability, recognition and measurement, comparability), which indicates the necessity of accepting or not accepting international standards for small and medium sized entities.

Keywords

References

دانایی فرد، حسن؛ الوانی، سید مهدی؛ آذر، عادل.(1398). روش­شناسی پژوهش کیفی در مدیریت: رویکردی جامع، تهران: انتشارات اشراقی صفار.
رحیمیان، نظام‌الدین.(1391). استانداردهای بین‌المللی گزارشگری مالی برای واحدهای تجاری کوچک و متوسط. چاپ اول، تهران، انتشارات دهکده.
قلی پور، شهربانو.(1393). شرکت‌های تجاری کوچک و متوسط و استانداردهای بین‌المللی گزارشگری مالی. بررسی زیربنای استانداردهای حسابداری و گزارشگری مالی، مجله بورس، 111: 106-105.
نیک‌روش، مهدی.(1393). بنگاه‌های کوچک و متوسط و استانداردهای بین‌المللی حسابداری، مجله بورس، سال هفتم،107:111-108.
Namazi, M. & G. Rezaei.(2015). Examining the impact of accruals quality and information relevance on the agency costs of the companies listed in Tehran Stock Exchange. Empirical Studies in Financial Accounting Quarterly, 11( 44): 37-69.(in persian)
Alp, A. & S. Ustundag,(2009). Financial reporting transformation: the experience of Turkey. Critical perspectives on accounting vol. 20: 680 -699.
Balci, B.(2011). The nexus between "Basel II" and "IFRS for SMEs. Journal of Yasar University vol. 21. 6: 3471 -3479.
Clark R. and S. Stewart.(2010). Spotting the Differences between UK GAAP and IFRS for SMEs. Available in www.Google.com.
Danaei fard, H. Alvani, M. azar,A.(2019). Qualitative research methodology in management: A comprehensive approach. Tehran:  eshraghi safar. (In Persian).
Dinuja Perera and Parmod Chand.(2015). Issues in the adoption of international financial reporting standards (IFRS) for small and medium-sized enterprises (SMES). Available in www.elsevier.com/locate/adiac
Feltham, D.K., 2013. The Adoption of International Accounting Standards for SME. PhD thesis, Walden University. [Online] Available at: https://search.proquest.com/openview/  (Accessed on 11 Oct. 2017).
Gholi por, shahrbano.(2015). Small and Medium Enterprises and Financial Reporting Accounting Standards. Investigate the underlying accounting and financial reporting standards. Journal of Exchange;.111:105-106، (in Persian).
Lalin, H. and Sabir, R.(2010). Research on Usage and Usefulness Perception of Financial Accounting Practices in Less Developing Countries: A case of Cambodia. Proceedings of the 7th International Conference of Innovation and Management. 1881 -1885.
Maesko, N. and Manyani, O.(2011). Accounting practices of SMEs in Zimbabwe: An investigative study of record keeping for performance measurement (A case study of Bindura). Journal of Accounting and Taxation vol. 3,. 8:171 -181.
Mesaa,Rafael Bautista. Juan María Muñoz-Tomásb , María Paz Horno-Buenoc.(2019). Does the IASB know the needs of SMEs? A comparative analysis between the IFRS for SMEs and full IFRS due processes, Revista de Contabilidad - Spanish Accounting Review22(2): 203-217
Nermine Ahmed Mamdouh.(2015). The Potential Effect of the Implementation of the IFRS For Smes on the Credit Decision for Small Entities. Proceedings of 30th International Business Research Conference 20 - 22 April 2015, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-74-0
Nik ravesh, mehdi.(2015). Small and Medium Enterprises and Financial Reporting Accounting Standards.  Journal of  Exchange;111:107-108، (in Persian).        
Perera, D. & Chand, P.(2015). Issues in the adoption of international financial reporting standards (IFRS) for small and medium-sized enterprises (SMES). Advances in Accounting Incorporating Advances in International Accounting, 31: 165–178.
Ploybut, S. (2012). Financial reporting by small and medium enterprises in Thailand. PhD thesis. University of Portsmouth.http://eprints.port.ac.uk/9861/
Poudel, G. Hellmann, A. & Perera, H.(2014). The adoption of International Financial Reporting Standards in a non-colonized developing country: The case of Nepal. Advances in Accounting Incorporating Advances in International Accounting, (30): 209-216.
rahimian, nezamodin.(2013). Financial Reporting Accounting Standards for Small and Medium Enterprises. Print 1, Tehran: dehkdeh. (In Persian).
Stainbank, L. and Tafuh, M.(2011). The threshold, burden and usefulness of financial reporting for small and medium-sized entities in kwazulu-Natal. Alternative Special Edition 4:69 -102.
Vladimir Obradovic  Milan Cupic  Dragomir Dimitrijević.(2018). Application of International Financial Reporting Standards in the Transition Economy of Serbia.Australian Accounting Review, 28(1): 48-60.
 
Empirical Research in Accounting
Volume 11, Issue 3 - Serial Number 41
September 2021
Pages 113-138

Files

History

  • Receive Date: 28 December 2019
  • Revise Date: 15 August 2020
  • Accept Date: 20 January 2021

Share

How to cite

Statistics