IFRS for SMEs and NGOs – Burden or Advantage

Ján VLČKO

https://doi.org/10.53465/EDAMBA.2022.9788022550420.519-529

 

Abstract: IFRS for SMEs is issued as standard for a while now. In Slovakia it is still not allowed to use officially for the legal official financial statements. IFRS for NGOs is even not proposed yet. Some SMEs and NGOs need to disclose their financial statements according to accepted international accounting standards or according to foreign accounting standards. Companies with foreign ownership represent less than 10% of all companies but provide more than 40% of net turnover. Legislative makers in Slovakia does not reflect to the market demand and trends by updating legislative what forces some SMEs to perform dual accounting, legal based on SK GAAP and unofficial based on IFRS. There are some concerns of IFRS for SMEs adoption in Slovakia which needs to be overcame and risks mitigated. This paper provides brief overview of arguments and reasonings to get IFRS for SMEs implemented in Slovakia. On examples of real NGOs, it is shown how dual accounting rises expenses and administrative burden. US GAAP also cover NGOs, while IFRS do not. Policy of both to converge each other provides hope that even IFRS for NGOs will be once proposed.

Keywords: IFRS, SME, NGO, accounting

JEL classification: E44, J30

Fulltext: PDF

Online publication date: 3 March 2023

ISBN: 978-80-225-5042-0

Publisher: University of Economics in Bratislava

Pages: 519-529

 

To cite this proceedings paper (STN ISO 690 and 690-2):

VLČKO, J. 2023. IFRS for SMEs and NGOs – burden or advantage. In LÜLEYOVÁ, A. (ed.). EDAMBA 2022: Conference Proceedings. Bratislava: University of Economics in Bratislava, 2023. ISBN 978-80-225-5042-0, pp. 519-529. https://doi.org/10.53465/EDAMBA.2022.9788022550420.519-529