5th European International Conference on Industrial Engineering and Operations Management

Level of IFRS Implementation in SMEs: Exploratory Case Studies of SMEs in (Palembang), South Sumatera, Indonesia

Amany Larassyah Amir, Muji Gunarto, Amirudin Syarif & Dian Cahyawati
Publisher: IEOM Society International
0 Paper Citations
Track: Undergraduate Student Paper Competition

The IFRS standard has often been regarded as the solution to tackling international accounting challenges and eliminating differences. Many nations including Indonesia, have converged and adopted IFRS to their national accounting standard in hopes that businesses can compete better in the global market, especially for SMEs. Despite their long presence (since 2012), the optimal results of IFRS in SMEs have yet to be seen. The hypothesis on why this happened is that many SME’s have not been able to implement the standard. This study seeks to identify the reason why optimal results from the IFRS in SMEs is hindered, by taking on an empirical approach using surveys and interviews involving business owners as well as SMEs around the area to understand the usage and relevancy of IFRS in their operations. Subsequently, providing a realistic view on the development and implementation rate of IFRS in SME’s located in Palembang, South Sumatera. Systematic literature reviews from relevant journals and articles were conducted in order to explore what it means to implement IFRS effectively alongside the barriers and challenges it brings. The results of this study hope to serve as a contribution to data collection and other research, as well as display the realistic state of SMEs in Palembang to the government, while acting as a filter for potential SMEs to enter the global market.

Published in: 5th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: July 26-28, 2022

ISBN: 978-1-7923-9161-3
ISSN/E-ISSN: 2169-8767