Small and Medium Enterprises & International Financial Reporting Standards (IFRS): Evidence from Emerging Economy

Harmonisation of accounting practices has taken centre stage globally providing users with meaningful information to make informed decisions across countries, corporations and even small and medium enterprises (SMEs). Only few studies have addressed the challenges and needs of financial reporting for SMEs, especially in emerging nation. This study aims to explore the challenges and opportunities in the implementation of IFRS for SMEs in the context of emerging economy. Data was collected through interviews with selected SMEs in Brunei. It is observed that the IFRS implementation was conducted similarly to other countries where mostly adopted through institutional intervention, regulatory guidance and compliance in managing the challenges faced by the respective SMEs.