Moyo, V.Oseifuah, E. K.Sirembe, Ndivhuwo2025-02-192025-02-192024-09-06Sirembe, N. 2023. International Financial Reporting Standards for Small, Medium and Enterprises (IFRS for SMEs) and the quality of financial reporting: Some evidence from the Limpopo Province. Thohoyandou, South Africa.<https://univendspace.univen.ac.za/handle/11602/2804>.https://univendspace.univen.ac.za/handle/11602/2804M.Com (Accounting)Department of AccountancySmall and Medium-sized Enterprises (SMEs) play a vital role in the South African economy. South Africa's Companies Act (71 of 2008) requires companies to follow either full International Financial Reporting Standards (IFRS) or IFRS for SMEs. IFRS for SMEs was introduced by the International Accounting Standards Board (IASB) in 2009 as an alternative framework for eligible entities, offering an option instead of the complete set of IFRSs. Despite the introduction of IFRS for SMEs, there has been no comprehensive examination of its impact on the financial reporting quality (FRQ) of SMEs in South Africa. This study aimed to provide in-depth insights into the quality of financial reporting by SMEs in the Limpopo Province since the adoption of IFRS for SMEs in South Africa. The study sampled twenty accounting firms, selecting five from each municipality to handle Annual Financial Statements (AFS) for five SMEs each, resulting in a total of 100 SMEs. Since there is no universally agreed-upon metric for assessing FRQ, the study used three previously employed measures and an aggregate measure. This approach served two purposes: firstly, to account for all facets of FRQ as a single proxy might fall short, and secondly, to enhance the generalisability of our findings. Ordinary Least Square (OLS) Regression analysis was employed to investigate the period post-IFRS for SMEs adoption. This investigation spanned two periods: the initial five years (2010-2014) and the last five years (2015-2019), with the objective of assessing whether FRQ improved over time. Several models were examined using linear regression to analyse the relationship between independent and dependent variables. The analysis was conducted using STATA 15 software. The study’s findings offer evidence that precise accrual recording and the adoption of IFRS for SMEs have positively impacted the financial reporting quality of SMEs, leading to increased earnings levels and improved accounting conservatism. Furthermore, the findings accentuate the importance of adhering to accrual accounting principles and embracing standardised reporting practices for SMEs, as these contribute to the overall credibility and utility of financial information for stakeholders. This study offers valuable insights to accounting standard-setting bodies, professional associations, SME accountants, owners, investors, and academics, enhancing their understanding of IFRS for SMEs’ impact on SME financial reporting quality.1 online resource (97 leaves)enFinancial Reporting QualityUCTDSME'sEarnings managementTimely loss recognitionDissertationSirembe N. International Financial Reporting Standards for Small, Medium and Enterprises (IFRS for SMEs) and the quality of financial reporting: Some evidence from the Limpopo Province. []. , 2024 [cited yyyy month dd]. Available from:Sirembe, N. (2024). <i>International Financial Reporting Standards for Small, Medium and Enterprises (IFRS for SMEs) and the quality of financial reporting: Some evidence from the Limpopo Province</i>. (). . Retrieved fromSirembe, Ndivhuwo. <i>"International Financial Reporting Standards for Small, Medium and Enterprises (IFRS for SMEs) and the quality of financial reporting: Some evidence from the Limpopo Province."</i> ., , 2024.TY - Dissertation AU - Sirembe, Ndivhuwo AB - Small and Medium-sized Enterprises (SMEs) play a vital role in the South African economy. South Africa's Companies Act (71 of 2008) requires companies to follow either full International Financial Reporting Standards (IFRS) or IFRS for SMEs. IFRS for SMEs was introduced by the International Accounting Standards Board (IASB) in 2009 as an alternative framework for eligible entities, offering an option instead of the complete set of IFRSs. Despite the introduction of IFRS for SMEs, there has been no comprehensive examination of its impact on the financial reporting quality (FRQ) of SMEs in South Africa. This study aimed to provide in-depth insights into the quality of financial reporting by SMEs in the Limpopo Province since the adoption of IFRS for SMEs in South Africa. The study sampled twenty accounting firms, selecting five from each municipality to handle Annual Financial Statements (AFS) for five SMEs each, resulting in a total of 100 SMEs. Since there is no universally agreed-upon metric for assessing FRQ, the study used three previously employed measures and an aggregate measure. This approach served two purposes: firstly, to account for all facets of FRQ as a single proxy might fall short, and secondly, to enhance the generalisability of our findings. Ordinary Least Square (OLS) Regression analysis was employed to investigate the period post-IFRS for SMEs adoption. This investigation spanned two periods: the initial five years (2010-2014) and the last five years (2015-2019), with the objective of assessing whether FRQ improved over time. Several models were examined using linear regression to analyse the relationship between independent and dependent variables. The analysis was conducted using STATA 15 software. The study’s findings offer evidence that precise accrual recording and the adoption of IFRS for SMEs have positively impacted the financial reporting quality of SMEs, leading to increased earnings levels and improved accounting conservatism. Furthermore, the findings accentuate the importance of adhering to accrual accounting principles and embracing standardised reporting practices for SMEs, as these contribute to the overall credibility and utility of financial information for stakeholders. This study offers valuable insights to accounting standard-setting bodies, professional associations, SME accountants, owners, investors, and academics, enhancing their understanding of IFRS for SMEs’ impact on SME financial reporting quality. DA - 2024-09-06 DB - ResearchSpace DP - Univen KW - Financial Reporting Quality KW - SME's KW - Earnings management KW - Timely loss recognition LK - https://univendspace.univen.ac.za PY - 2024 T1 - International Financial Reporting Standards for Small, Medium and Enterprises (IFRS for SMEs) and the quality of financial reporting: Some evidence from the Limpopo Province TI - International Financial Reporting Standards for Small, Medium and Enterprises (IFRS for SMEs) and the quality of financial reporting: Some evidence from the Limpopo Province UR - ER -