Naslov
ANALYSIS OF THE IFRSS’ APPLICATION IN NORTH AND SOUTH AMERICAN COUNTRIES

Autori
Pavić, Ivana

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Skup
10th International Odyssey Conference on Economics and Business

Mjesto i datum
Opatija, Hrvatska, 12.06.2019. - 15.06.2019

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
IFRS, IFRS for SMEs, application around the world, North America, South America

Sažetak
The goal of this paper was to investigate how many countries in South and North America apply IFRSs as a basis for preparing financial statements. Today, IFRS are recognized as one of the most important instruments for financial reporting harmonization worldwide and many international organizations promote adoption of those standards. European Union also recognized importance of reliable and comparable financial statement as assumption for free exchange of capital across member states and therefore issued in 2002 Regulation requiring from all quoted companies at EU capital markets to prepare consolidated financial statements applying IFRSs. As a result, all EU member states should apply IFRSs for at least such category of companies. Countries usually apply some national standards for small and medium sized entities at national levels, but even those standards are in many cases under the influence of accounting principles form IFRSs. It can be said that IFRSs were primarily recognized as basis for financial reporting of listed companies but many national standards today represent shorten version of IFRSs influencing financial reporting within national boundaries. Due to the fact that IFRSs are very important in Europe, it was interesting to investigate how many countries and in which form in America apply IFRSs and IFRS for SMEs. Paper analyzes IFRS application in 23 North American countries and in 12 South American countries. This analysis was conducted on the basis of individual profiles of American countries published on official IFRS Foundation website. Research showed that most North American countries use IFRSs as basis for financial reporting for listed companies, namely ; 14 countries require IFRSs for listed companies, 2 countries permits IFRSs for listed companies, 2 countries requires IFRSs or US GAAP-s, one requires only US GAAP-s (USA), 2 countries do not have stock exchange and only 2 countries require national standards for listed companies (but one of them – Cuba made strong commitment to move towards IFRS in future). IFRSs for SMEs are required or permitted in 19 countries and are not permitted in only 4 countries (Canada, Cuba, Mexico and USA). This paper also analysis application of IFRSs and IFRSs for SMEs in 12 South American countries. Research showed that IFRSs strongly affect financial reporting in this part of the word, namely ; 9 countries require IFRSs for listed companies, 1 country permits IFRSs (Paraguay) while 2 countries require only national accounting standard for listed companies (Bolivia and Suriname). Bolivia made strong commitment to move towards IFRSs in future. Moreover, 5 South American countries require IFRSs for SMEs, 5 permits those standards and only 2 countries do not allow IFRSs for SMEs (Bolivia and Suriname). Overall, 80% of American Countries Requires or permits application of IFRSs for listed companies and IFRS for SMEs for small and medium sized entities.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA