Preparedness of the entities for the IFRS for SMEs: an emerging country case
Abstract
Purpose
The purpose of this paper is to determine the preparedness of the small- and medium-sized enterprises (SMEs) for the International Financial Reporting Standard (IFRS) for SMEs in Turkey; and to analyze the effect of several firm characteristics on such preparedness.
Design/methodology/approach
The preparedness of the SMEs was determined via a questionnaire survey. The effect of several characteristics of the SMEs (i.e. size, age, independent auditing, internationality, and the existence of an accounting department) on their preparedness was examined by employing non-parametric tests and logistic regression.
Findings
This study found that the preparedness of the SMEs for IFRS for SMEs is low in Turkey. Several firm characteristics including, size, independent auditing, and internationality have a significant impact on the preparedness of the SMEs.
Research limitations/implications
This study has some implications for several parties, including national and international standard setting authorities, entities, managers, and accounting professionals. SMEs are one of the most important actors in the adoption process of the IFRS for SMEs. Their preparedness level for IFRS for SMEs will present important clues to sustain an effective and successful adoption process. The results of this study show the profile of entities which are prepared for IFRS for SMEs that will be useful for standard authorities and regulatory bodies. The findings of this study will also be useful for other emerging countries’ standard authorities because they will face similar problems in their adoption process.
Originality/value
This research makes a significant contribution to the existing literature because there are only a few studies that analyze the preparedness for IFRS for SMEs, especially in emerging countries.
Keywords
Acknowledgements
This study is supported by the Scientific Research Fund of Fatih University under the project number P54081201_B.
Citation
Kiliç, M., Uyar, A. and Ataman, B. (2016), "Preparedness of the entities for the IFRS for SMEs: an emerging country case", Journal of Accounting in Emerging Economies, Vol. 6 No. 2, pp. 156-178. https://doi.org/10.1108/JAEE-01-2014-0003
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited