Tunisia. IFRS for SMEs and Tunisian Accounting

Abstract

The International Accounting Standard Board (IASB) continues to work with regulators in some countries toward the adoption of full IFRS. This study reports on an exploratory review of Tunisian’s Certified Public Accountants (CPA) perceptions about important issues relevant to developing and implementing the IFRS for SMEs. All Tunisian companies are required to prepare their financial statements according to the Tunisian Accounting System (SCT) since 1997. The paper provides insight into the perception of CPA on IFRS for SMEs based on a questionnaire. The 87 responses received indicate that (1) the CPA consider that the SCT as pretty consistent with international standards. (2) It is also preferable to adopt the international standard specific to SMEs in order to improve the quality of information supplied by the Tunisian SMEs and to better comparability and transparency. (3) The costs of implementation and adaptation are the main obstacles to the success of this adoption. This study has an impact on various involved parties (Tunisian companies, accountants, accounting standard-setter and public authorities). The topic is judicious because the prominence of IFRS for SMEs is growing in emerging countries. In addition to mandatory reporting, voluntary reporting under IFRS for SMEs is expected to increase significantly for companies seeking to raise capital in international markets.