Hdl Handle:
http://hdl.handle.net/10545/621835
Title:
A study of adoption rates and financial effects of IFRS for SMEs
Authors:
Conway, Elaine ( 0000-0003-2736-8051 )
Abstract:
The International Accounting Standards Board (IASB) issued IFRS for SMEs in July 2009. It was the first set of international accounting standards for small and medium-sized enterprises (SMEs). The IASB’S aim was to encourage SMEs to adopt comparable international standards but with a reduced burden of detailed disclosures and complexity in comparison with the full international financial reporting standards. The benefits of IFRS adoption are to provide better information to investors, lenders and other capital providers, given the more consistent and comparable approaches used under IFRS. This study examines to what extent SMEs across Great Britain (encompassing the UK and Ireland) have adopted IFRS for SMEs and whether this has potentially affected their financial performance. A sample of 5,080 unlisted SMEs were analysed between 2009 and 2015 to ascertain how many firms have made the switch to IFRS for SMEs away from UK GAAP and whether those firms exhibited better financial performance. Only 5% (254) firms had adopted IFRS by 2015, only 2 more than in 2009. SMEs who have remained using UK GAAP have outperformed those with IFRS in terms of profitability, but they demonstrate poorer liquidity, gearing, sales growth and cash flow from operations. This study is of interest to standard setters who wish to understand the potential effects of IFRS adoption and promote wider engagement of SMEs with IFRS for SMEs.
Affiliation:
University of Derby
Citation:
Conway, E. (2017) 'A study of adoption rates and financial effects of IFRS for SMEs', Presented at the British Accounting And Finance Association Northern Area Group Annual Conference, Bangor Business School, Bangor University, 14th ‒ 15th September.
Issue Date:
Sep-2017
URI:
http://hdl.handle.net/10545/621835
Additional Links:
http://bafa.ac.uk/subgroups/regional/northern/events/upcoming-events/nag-annual-conference-2017.html
Type:
Presentation
Language:
en
Sponsors:
N/A
Appears in Collections:
Derby Business School

Full metadata record

DC FieldValue Language
dc.contributor.authorConway, Elaineen
dc.date.accessioned2017-09-06T08:36:57Z-
dc.date.available2017-09-06T08:36:57Z-
dc.date.issued2017-09-
dc.identifier.citationConway, E. (2017) 'A study of adoption rates and financial effects of IFRS for SMEs', Presented at the British Accounting And Finance Association Northern Area Group Annual Conference, Bangor Business School, Bangor University, 14th ‒ 15th September.en
dc.identifier.urihttp://hdl.handle.net/10545/621835-
dc.description.abstractThe International Accounting Standards Board (IASB) issued IFRS for SMEs in July 2009. It was the first set of international accounting standards for small and medium-sized enterprises (SMEs). The IASB’S aim was to encourage SMEs to adopt comparable international standards but with a reduced burden of detailed disclosures and complexity in comparison with the full international financial reporting standards. The benefits of IFRS adoption are to provide better information to investors, lenders and other capital providers, given the more consistent and comparable approaches used under IFRS. This study examines to what extent SMEs across Great Britain (encompassing the UK and Ireland) have adopted IFRS for SMEs and whether this has potentially affected their financial performance. A sample of 5,080 unlisted SMEs were analysed between 2009 and 2015 to ascertain how many firms have made the switch to IFRS for SMEs away from UK GAAP and whether those firms exhibited better financial performance. Only 5% (254) firms had adopted IFRS by 2015, only 2 more than in 2009. SMEs who have remained using UK GAAP have outperformed those with IFRS in terms of profitability, but they demonstrate poorer liquidity, gearing, sales growth and cash flow from operations. This study is of interest to standard setters who wish to understand the potential effects of IFRS adoption and promote wider engagement of SMEs with IFRS for SMEs.en
dc.description.sponsorshipN/Aen
dc.language.isoenen
dc.relation.urlhttp://bafa.ac.uk/subgroups/regional/northern/events/upcoming-events/nag-annual-conference-2017.htmlen
dc.subjectInternational financial reporting standards (IFRS)en
dc.subjectSmall to medium-sized enterprisesen
dc.subjectAdoption ratesen
dc.subjectGenerally accepted accounting practice (GAAP)en
dc.titleA study of adoption rates and financial effects of IFRS for SMEsen
dc.typePresentationen
dc.contributor.departmentUniversity of Derbyen
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