This research investigates the perceptions of stakeholders involved in financial reporting
in four emerging economies (the Czech Republic, Hungary, Romania, and Turkey)
regarding the possible implementation of IFRS for SMEs, in terms of costs, benefits,
and strategy of adoption. In-depth, semi-structured interviews were conducted with representatives
of main stakeholders (preparers, auditors, regulators, professional bodies,
and users). We find more support for IFRS for SMEs implementation in these four
countries than suggested by the results of the European Commission’s 2010 consultation
for the European Union. Interviews reveal differences between stakeholder groups
and between countries regarding the preferred implementation approach (mandatory
adoption, voluntary adoption or convergence of national regulations with IFRS for
SMEs). Interviews indicate the most support for the convergence approach. However,
users oppose convergence and prefer the adoption of IFRS for SMEs. The convergence
approach moves regulators’ attention from users’ needs to preparers’ preferences
and preparedness. This finding is relevant in the decision-making process of national