How Do Preparers Perceive Costs and Benefits of IFRS for SMEs? Empirical Evidence from the Netherlands

Accounting in Europe, Fall 2012

Posted: 23 Mar 2012 Last revised: 9 Feb 2013

See all articles by Robin Litjens

Robin Litjens

Tilburg University - CentER and Department of Accountancy

Sanjay Bissessur

Amsterdam Business School - University of Amsterdam

Henk P. A. J. Langendijk

University of Amsterdam

Ruud Vergoossen

Nyenrode Business University; Maastricht University

Date Written: March 1, 2012

Abstract

This paper examines how preparers perceive the association between costs and benefits of IFRS for SMEs. Extant research on costs and benefits associated with IFRS for SMEs is inconclusive. Our results suggest that preparers consider costs and benefits of IFRS for SMEs separately, not concurrently, and evaluate them in relative terms. Taken together, the results indicate that a voluntary adoption decision depends on the preparers’ context for the cost-benefit analysis, which appears to be a non-linear process. Specifically, our findings could contribute to the discussion by the European Financial Reporting Advisory Group (EFRAG) on taking the effects of accounting standards into account whilst developing standards.

Keywords: IFRS for SMEs, Private Firms, Accounting Standards Choice

JEL Classification: D23, D80, M41

Suggested Citation

Litjens, Robin and Bissessur, Sanjay and Langendijk, Henk P. A. J. and Vergoossen, Ruud, How Do Preparers Perceive Costs and Benefits of IFRS for SMEs? Empirical Evidence from the Netherlands (March 1, 2012). Accounting in Europe, Fall 2012. Available at SSRN: https://ssrn.com/abstract=1940646

Robin Litjens (Contact Author)

Tilburg University - CentER and Department of Accountancy ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Sanjay Bissessur

Amsterdam Business School - University of Amsterdam ( email )

Plantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands

Henk P. A. J. Langendijk

University of Amsterdam ( email )

Department of Accountancy & Information Management Roetersstraat 11
Amsterdam 1018 WB
Netherlands
+31 20 525-4260 (Phone)
+31 20 525-5281 (Fax)

Ruud Vergoossen

Nyenrode Business University ( email )

Straatweg 25
P.O. Box 130
Breukelen, 3620 AC
Netherlands

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

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