Implementation of IFRS for SME in agricultural enter-prises in the Czech Republic
Mendel University in Brno
IFRS for SME, Small and medium-sized enterprises, Agriculture, Advantages and disadvantages
With the growing importance of small and medium-sized enterprises there is also need to harmonize their financial statements. In this connection IFRS for SME has been developed but currently, it is not part of Czech or European accounting legislation. However, there are some countries in the world that have already adopted this standard and incorporated it in their national legislation. The aim of this paper is to identify the advantages and disadvantages associated with the implementation of IFRS for small and medium-sized enterprises involved in agricultural activities and operating in the Czech Republic. This paper is based on existing experience with implementation of the standard in some countries of the world and a questionnaire survey which was carried out on a sample of agricultural enterprises in the Czech Republic. From the survey it is evident that the representatives of the accounting units interviewed are concerned predominantly about greater administrative burden, which is already now considered to be a major obstacle in the business of small and medium-sized enterprises in the Czech market, and a number of them are also concerned about high implementation costs connected with the adoption of IFRS for SME.
Acta Universitatits Bohemiae Meridionalis (ISSN 1212-3285, online 2336-4297) University of South Bohemia in České Budějovice, Faculty of Economics Studentská 13, 370 05 České Budějovice, Czech Republic Contact: firstname.lastname@example.org; Phone Number: +420 38 777 2486