Implementation of IFRS for SMEs in Emerging Economies: Stakeholder Perceptions in the Czech Republic, Hungary, Romania and Turkey

36 Pages Posted: 4 May 2013

See all articles by Catalin Nicolae Albu

Catalin Nicolae Albu

Bucharest Academy of Economic Studies

Nadia Albu

Bucharest Academy of Economic Studies

Szilveszter Fekete

Babes-Bolyai University; Corvinus University of Budapest

Maria Mădălina Gîrbină

Bucharest Academy of Economic Studies

Seval Kardes Selimoglu

Anadolu University

Daniel Mate Kovacs

Corvinus University of Budapest

János Lukács

Budapest Corvinus University

Gergely Mohl

Corvinus University of Budapest

Libuse Müllerova

University of Economics, Prague

Marie Pasekova

Tomas Bata University

Aylin Poroy Arsoy

Uludag University

Baris Sipahi

Marmara University

Jiri Strouhal

University of Economics Prague

Date Written: Summer 2013

Abstract

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 SMEs, 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 SMEs implementation in these four countries than suggested by the results of the European Commission's 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 SMEs). Interviews indicate the most support for the convergence approach. However, users oppose convergence and prefer the adoption of IFRS for SMEs. 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.

Suggested Citation

Albu, Catalin Nicolae and Albu, Nadia and Fekete, Szilveszter and Gîrbină, Maria Mădălina and Selimoglu, Seval Kardes and Mate Kovacs, Daniel and Lukács, János and Mohl, Gergely and Müllerova, Libuse and Pasekova, Marie and Poroy Arsoy, Aylin and Sipahi, Baris and Strouhal, Jiri, Implementation of IFRS for SMEs in Emerging Economies: Stakeholder Perceptions in the Czech Republic, Hungary, Romania and Turkey (Summer 2013). Journal of International Financial Management & Accounting, Vol. 24, Issue 2, pp. 140-175, 2013. Available at SSRN: https://ssrn.com/abstract=2260644 or http://dx.doi.org/10.1111/jifm.12008

Catalin Nicolae Albu (Contact Author)

Bucharest Academy of Economic Studies ( email )

Piața Romană 6
Bucharest, 010374
Romania

Nadia Albu

Bucharest Academy of Economic Studies ( email )

Piata Romana No. 6
Sect. 1
Bucharest
Romania

Szilveszter Fekete

Babes-Bolyai University ( email )

58-60 Th. Mihali Street, Room 223
Cluj-Napoca, Cluj 400591
Romania
00 40 742 074 985 (Phone)
00 40 364 104 253 (Fax)

HOME PAGE: http://www.econ.ubbcluj.ro/~szfekete/

Corvinus University of Budapest ( email )

8 Fovam Square, Room 300
Budapest, 1093
Hungary

Maria Mădălina Gîrbină

Bucharest Academy of Economic Studies ( email )

6, Piata Romana, 1st district
Bucharest, 010374
Romania

Seval Kardes Selimoglu

Anadolu University ( email )

26470 Esikisehir
Turkey

Daniel Mate Kovacs

Corvinus University of Budapest ( email )

Hungary

János Lukács

Budapest Corvinus University ( email )

Budapest H-1093
Hungary

Gergely Mohl

Corvinus University of Budapest ( email )

Hungary

Libuse Müllerova

University of Economics, Prague ( email )

nam. W.Churchilla 4
Czech Republic

Marie Pasekova

Tomas Bata University ( email )

Masaryka 5555
Zlın, 760 01
Czech Republic

Aylin Poroy Arsoy

Uludag University ( email )

16059 Campus Gorukle Nilüfer
Bursa
Turkey

Baris Sipahi

Marmara University ( email )

Goztepe Campus
Istanbul, Istanbul 34840
Turkey

Jiri Strouhal

University of Economics Prague ( email )

Department of Financial Accounting and Auditing
W. Churchill Square 4
Prague 3, Prague Capital 130 67
Czech Republic
+420224095794 (Phone)
+420224095198 (Fax)

HOME PAGE: http://nb.vse.cz/~strouhal

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