The Perceived Value of Implementing IFRS for SMEs: An Exploratory Study from the Point of View of Managers in Jordan

Authors

  • Khalid Ali Alduneinat

Abstract

The purpose of this exploratory study is to add to the literature on the perceived value of applying IFRS for SMEs standard from the perspective of managers in Jordan’s small and medium-sized enterprises (JSMEs). Based on previous literature and the Value-Based Model Theory, which incorporates the cost-benefit analysis principle, a questionnaire was developed, and 137 valid ones were used to test data regarding the perceived value of appropriateness, possibility, cost, and benefits of implementing IFRS for SMEs standard.

The study’s major conclusion found a moderate level of positive consensus about implementation perception; the results also suggested that benefits marginally outweighed implementation costs.

The study’s goal is to raise policymakers’ and regulatory experts’ attention to the potential benefits, costs, and obstacles of implementing the standard.

this study contributes to international accounting harmonization efforts by demonstrating how Jordanian managers assess the costs, benefits, and opportunities of IFRS for SMEs in JSMEs implementation. This study recommended the following: Expedite the application, conduct thorough IFRS for SMEs awareness and training programs at different levels, and provide financial data for these SMEs in the public interest.

Future studies should test new firm variables after the application of this standard and, the reasonable costs and benefits are known.

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Published

2024-06-20

How to Cite

Alduneinat, K. A. (2024). The Perceived Value of Implementing IFRS for SMEs: An Exploratory Study from the Point of View of Managers in Jordan. Business and Management Horizons, 11(1). Retrieved from https://macrojournal.org/index.php/bmh/article/view/2020

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