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Implementation of IFRS for SME s in Emerging Economies: Stakeholder Perceptions in the Czech Republic, Hungary, Romania and Turkey
Author(s) -
Albu Cătălin Nicolae,
Albu Nadia,
PaliPista Szilveszter Fekete,
Gîrbină Maria Mădălina,
Selimoglu Seval Kardes,
Kovács Dániel Máté,
Lukács János,
Mohl Gergely,
Müllerová Libuše,
Paseková Marie,
Arsoy Aylin Poroy,
Sipahi Barıs,
Strouhal Jiri
Publication year - 2013
Publication title -
journal of international financial management and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.818
H-Index - 37
eISSN - 1467-646X
pISSN - 0954-1314
DOI - 10.1111/jifm.12008
Subject(s) - czech , convergence (economics) , business , stakeholder , accounting , audit , emerging markets , european union , preparedness , marketing , finance , public relations , economics , economic growth , political science , international trade , management , philosophy , linguistics
This research investigates the perceptions of stakeholders involved in financial reporting in four emerging economies (the Czech Republic, Hungary, Romania, and Turkey) regarding the possible implementation of IFRS for SME s, in terms of costs, benefits, and strategy of adoption. In‐depth, semi‐structured interviews were conducted with representatives of main stakeholders (preparers, auditors, regulators, professional bodies, and users). We find more support for IFRS for SME s implementation in these four countries than suggested by the results of the European Commission's [, 2010] consultation for the European Union. Interviews reveal differences between stakeholder groups and between countries regarding the preferred implementation approach (mandatory adoption, voluntary adoption or convergence of national regulations with IFRS for SME s). Interviews indicate the most support for the convergence approach. However, users oppose convergence and prefer the adoption of IFRS for SME s. The convergence approach moves regulators' attention from users' needs to preparers' preferences and preparedness. This finding is relevant in the decision‐making process of national regulators, who should balance the needs of various stakeholders, but also the country's political and economic objectives.