IFRS for SMEs in Global Stance
The accounting profession has long struggled with the idea that the financial reporting needs of small, closely
held businesses often differ from those required by large, publicly traded companies (Zanzig, & Flesher, 2006).
Acceptance and imposition of International Accounting Standards (IAS) has reignited the debate on differential reporting, especially since the International Accounting Standards Board (IASB) issued a discussion document
in June 2004 on SME reporting. The IASB developed this special standard in recognition of the difficulty and
cost to private companies in the name of preparing fully compliant IFRS information for reporting (PWC, 2009).
The standard is a reporting one specifically tailored for small businesses and in the process of being adopted by
many countries worldwide. Fitzpatrick and Frank (2009) state that SMEs are entities that publish generalpurpose
financial statements for external users and do not have public accountability.