The implementation of the IFRS for SME in the EU

Hana Bohušová
2011 Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis  
BOHUŠOVÁ, H.: The implementation of the IFRS for SME in the EU. Acta univ. agric. et silvic. Mendel. Brun., 2011, LIX, No. 2, pp. 43-50 Small and medium sized companies have very important position in the EU economy, mainly in the area of employment. Their activities on the internal market are limited by a great deal of obstacles. The most important obstacles can be considered diff erent national fi nancial reporting and tax systems. IASB published an International Financial Reporting Standard
more » ... Reporting Standard (IFRS) designed for use by small and medium-sized entities (SMEs). The IFRS for SME is expressly designed to meet the fi nancial reporting needs of entities that (a) do not have public accountability and (b) publish general purpose fi nancial statements for external users. This standard could be a suitable instrument for the SME accounting harmonization. The aim of the paper is to analyze the problems connected with the harmonization of accounting legislation used by SMEs in EU countries especially in the Czech Republic. In the frame of methodology the empirical research was used. The author has distributed questionnaires to the enterprises in the Czech Republic, selected according to their size and the fi eld of activity. Comment letters of 210 respondents from 26 EU Member States were used for evaluation possibilities of the IFRS for implementation to national legislation. Based on the results of empirical research some problems could arise with the IFRS for SME application. Based on the questionnaires, respondents are highly interested in the costs and gains of IFRS for SME application. The gains should exceed the costs of IFRS for SME application. SME, harmonization, IFRS for SMEs, EU consultation Uganda (UG) 1 Source: European Commission III: The structure of respondents Type of respondents Number Share Users 26 12 % Public authorities and standards setters 29 14 % Accountants and auditors 68 32 % Preparers 87 42 % Source: European Commission
doi:10.11118/actaun201159020043 fatcat:rlbfcwpocnbbdfhz7gbqz6ceam