IMPACT OF THEIMPLEMENTATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (NIIFS) ON SMALL AND MEDIUM-SIZED ENTERPRISES (SMES)

Abstract

The application of IFRS in different countries has standardized the way of keeping accounting in different companies, knowing their impact is of utmost importance. The objective of the research was to determine the impact of the application of IFRS in SMEs, thus trying to provide evidence on the effect of IFRS on the financial situation of companies in Ecuador. The deductive method, qualitative approach, descriptive-causal research level was used. A total population of 182,868 companies was considered, and a sample of 137 companies, 65 employees of companies that apply IFRS; For this, a survey was applied. The results show that the economic activity carried out by the companies does not determine the application of the IFRS, the effect of the application of the IFRS is related to the adjustments of the financial statements, revaluation of assets, financial position, technological changes, equity and provision of retirements; there is a high probability of positively increasing the impact by reducing or increasing IFRS. Therefore, there is a high probability that the application of IFRS will increase the positive impact on the financial situation of companies.