APPLICABILITY OF IFRS FOR SMES IN THE CZECH REPUBLIC

Abstract

Paper is focused on problems associated with the implementation of IFRS for SMEs in the Czech Republic. There are discussed results of the research done on the base of structural interviews with the representatives of accounting profession (preparer, auditor, user, professional chamber and accounting regulator). Interviewees believe that the major costs of a possible application of the IFRS for SMEs will be additional costs connected to the preparation of second financial statements based on Czech accounting regulation due to the tax purposes. Interviewees are convinced that the major benefit of the adoption of the IFRS for SMEs would be the unification of accounting methods and principles which will lead towards higher comparability of accounting information. Possible application of the IFRS for SMEs might be considered as an opportunity to change the strong linkage of accounting and tax system in the Czech Republic.

DOI: http://dx.doi.org/10.5755/j01.em.17.2.2166