Hafizullah Barya

Abstract

 

Existing and growing complexities in financial reporting requirements of small and medium-sized enterprises and accounting standards has made the IASB to develop IFRS for SMEs. The objectives of this study are to explore and evaluate the implementation of IFRS for SMEs in developing countries and to analyze the implementation of IFRS for SMEs in the context of Afghanistan. The analyze is made on the basis of secondary data, which has been collected through literature review. Different statistical tools such as tables and figures have been used to analyze the data collected. The results of analysis indicate that developing countries despite some challenging issues intend to move towards IFRS for SMEs and actively implement it. The complex nature and excessive costs of implementation of IFRS for SMEs, hence limited resources, lack of well-qualified professional staff and professional education are the major listed challenges for the implementation of IFRS for SMEs in developing countries. All banks and companies in Afghanistan are obliged by the law to prepare their financial statements in accordance to IFRS, but SMEs in Afghanistan do not implement IFRS at all. Considering the advantages of IFRS for SMEs, it is recommended for Afghanistan to implement the IFRS for SME.

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