3 years ago

The macroeconomic determinants of the adoption of IFRS for SMEs

Ana Bonito, Cláudio Pais

Publication date: July–December 2018

Source: Revista de Contabilidad, Volume 21, Issue 2

Author(s): Ana Bonito, Cláudio Pais


Small and medium-sized entities (SMEs) represent more than 95% of companies worldwide and account for more than 65% of employment. As a move towards SME harmonization, in 2009 the International Accounting Standards Board (IASB) issued the International Financial Reporting Standards (IFRS) for SMEs. Due to the lack of studies on adoption of IFRS for SMEs, we analyze the relationship between macroeconomic factors and countries’ decision to adopt IFRS for SMEs. Based on a sample of 84 adopters and non-adopters of IFRS for SMEs, both developed and developing countries, we find evidence that countries without a national set of financial accounting standards for SMEs, with experience of applying IFRS and a common law legal system are more likely to adopt IFRS for SMEs. These results may be due to low transaction costs, the importance of having some knowledge of IFRS reporting given its complexity and belonging to IFRS based countries facilitating adoption of IFRS for SMEs. Additionally, we find that European Union (EU) member countries are less likely to adopt the standard. Knowledge of macroeconomic factors affecting the decision to adopt IFRS for SMEs is useful for the various entities that define international accounting harmonization, such as the IASB, regulators and international accounting firms, since this information can help them to promote worldwide adoption of the standard.


Las pequeñas y medianas empresas (pymes) representan más del 95% de las empresas de todo el mundo y contabilizan más del 65% del empleo. Como paso hacia la armonización de las pymes, en 2009 el International Accounting Standards Board (IASB) emitió las International Financial Reporting Standards (IFRS) para las pymes. Debido a la falta de estudios sobre la adopción de las IFRS por las pymes, analizamos la relación entre los factores macroeconómicos y la decisión de los países de adoptar las IFRS para las pymes. Con base en una muestra de 84 adoptantes y no adoptantes de las IFRS para las pymes, tanto países desarrollados como en vías de desarrollo, encontramos evidencia de que los países sin un conjunto nacional de normas de contabilidad financiera para las pymes, con experiencia en aplicar las IFRS y un sistema legal de derecho común son más propensos a adoptar las IFRS para las pymes. Estos resultados pueden deberse a los bajos costos de transacción y la importancia de tener cierto conocimiento de los informes IFRS dada su complejidad y pertenencia a los países basados en las IFRS, lo que facilita la adopción de las IFRS por las pymes. Además, encontramos que los países miembros de la Unión Europea (UE) tienen menos probabilidades de adoptar la norma. El conocimiento de los factores macroeconómicos que afectan a la decisión de adoptar las IFRS para las pymes es útil para las diversas entidades que definen la armonización contable internacional, como el IASB, los reguladores y las empresas contables internacionales ya que esta información puede ayudarlos a promover la adopción mundial de la norma.

You might also like
Discover & Discuss Important Research

Keeping up-to-date with research can feel impossible, with papers being published faster than you'll ever be able to read them. That's where Researcher comes in: we're simplifying discovery and making important discussions happen. With over 19,000 sources, including peer-reviewed journals, preprints, blogs, universities, podcasts and Live events across 10 research areas, you'll never miss what's important to you. It's like social media, but better. Oh, and we should mention - it's free.

  • Download from Google Play
  • Download from App Store
  • Download from AppInChina

Researcher displays publicly available abstracts and doesn’t host any full article content. If the content is open access, we will direct clicks from the abstracts to the publisher website and display the PDF copy on our platform. Clicks to view the full text will be directed to the publisher website, where only users with subscriptions or access through their institution are able to view the full article.