Article

 

Are Small Enterprises Ready for the Implementation of IFRS? The Case of Greece (p.81-116)

by

Jordan N. Floropoulos, Aristotle University of Thessaloniki

Odysseus E. Moschidis, ‘Saint Demetrius’ General Hospital

Keywords : international financial reporting standards (IFRS), small and medium-sized enterprises (SMEs), financial statements, disclosure, harmonization, Greek accounting standards

JEL classification : M400, M490, M190

Abstract

This paper investigates the level of readiness and the degree of familiarity among small and medium-sized Greek enterprises (SMEs) for the application of international financial reporting standards (IFRS). Readiness is defined as the capability for the full application of IFRS , and familiarity is understood in terms of the entity’s knowledge and competence in using IFRS. The present research is based on the statistical analysis of questionnaires completed by company accountants. Chi-square tests show that the level of readiness for the application of IFRS is not independent of: (i) whether the company is listed or unlisted; (ii) the size of the company; and (iii) the field of activity of the company. The results also show that the size of a company is not independent of: (i) the educational level of the accountant; and (ii) the years of professional experience of the accountant. No relationship is established between the company’s classification (as listed or unlisted) and the accountant’s level of familiarity with the application of IFRS. In addition, correspondence analysis is used to investigate the interdependence and interaction of all variables. The results of this analysis are presented in an ascendant hierarchy, thus allowing the variables to be classified into three groups of interest.