The Relevance of International Financial Reporting Standards for Small and Medium-Sized Entities (IFRS for SMEs) in Swaziland
Sithole, STM, The Relevance of International Financial Reporting Standards for Small and Medium-Sized Entities (IFRS for SMEs) in Swaziland, Journal of Modern Accounting and Auditing, 11, (8) pp. 383-402. ISSN 1548-6583 (2015) [Refereed Article]
The purpose of this study is to explore the relevance of adopting International Financial Reporting Standards (IFRS) for small and medium-sized entities (SMEs) in Swaziland. The study further seeks to determine if IFRS for SMEs can be the solution to better reporting by local SMEs. There has been a growing need for different reporting standards for small firms and big firms over the years due to the unique challenges and attributes they face especially in the area of financial reporting. This research is based on a statistical analysis of questionnaires completed by accountants from SMEs in Swaziland as well as other stakeholders who have a direct or an indirect interest in the financial statements of SMEs. These stakeholders included audit firms and the financial institutions. The sampling rate of 10% was applied across each industry to come up with a sample of 60 SMEs. Furthermore, a 100% sampling rate on the other stakeholders was applied. These were nine financial institutions and eight audit firms. The findings from the study revealed that SMEs in Swaziland are having challenges with the current reporting framework but to some extent, the framework is suitable. Most SMEs are not aware of IFRS for SMEs, therefore the accounting profession in Swaziland (SIA) has a huge role to play in training auditors and accountants in the country. Overall, IFRS for SMEs is applicable in Swaziland.
accounting, accounting standards, financial statements, International Financial Reporting Standards, relevance, small and medium-sized entities (SMEs), Swaziland,