An Analysis of Accountancy Firms Perspectives of the Need to Apply IFRS in Small and Medium Enterprises

Abstract

This paper examines the services provided by accountancy professionals to small and medium enterprises (SME). More specifically, the purpose is to understand the level of utilisation of international standards to these organisations “IFRS for SME” in Brazil in accordance to the national standards (NBC T 19.41). Overall, 32 interviews were carried out in accountancy organisations in the city of Recife-PE. The study focuses on the knowledge, utilisation and applicability of the International Standards to SME. The results show that there is a lack of utilisation of the standards and that some accountancy professionals do not have knowledge regarding the changes produced by the convergence process. Moreover, the study reveals that the majority of accountancy professionals consider unnecessary to adopt the “IFRS for SME”.

Keywords

• Accounting convergence
• Small and medium enterprises (SME)
• IFRS
• NBC T 19.41