Applied Research in Financial Reporting

Applied Research in Financial Reporting

Feasibility and providing a framework for applying International Financial Reporting Standards for Small and Medium-sized Enterprises in Iran

Document Type : Original Article

Authors
Alireza Nasiri Farvazi
Sasan Mehrani
Mohammad Moradi
Ali Rahmani
Abstract
This study examines the feasibility of applying International Financial Reporting Standards for Small and Medium-sized Entities from four dimensions (stakeholders, cost-benefit analysis, scope and strategies of employment). Qualitative research method and thematic analysis method have been used for data analysis. In this regard, semi-structured interviews were conducted with 19 managers and partners of auditing firms and standardization members of the auditing organization who were selected by the method of snowball.
The research findings indicate that the need to apply these standards from the perspective of stakeholders and consideration of cost-benefits analysis, can be justified. Also, from the scope of Standard, it is necessary to use quantitative criteria (including number of employees, operating income and assets) and another qualitative criterion (separation of subsidiaries) in addition to the qualitative criterion of the board in defining SMEs. In terms of employment strategies, the permission and localization strategies were selected. Also a three-tier approach can be used as a framework for reporting these business units.
        
Keywords
 IFRS for SMEs
Strategies for Applying Standards
Definition of SMEs
Stakeholders
Cost-Benefits Analysis

  • Receive Date 08 February 2022
  • Revise Date 10 September 2022
  • Accept Date 24 August 2022