Analysis shows that there are a number of diverse user groups who employ SME financial statements in their decision making processes. Lenders and owner managers are arguably the most significant users. However, it is clear that the financial statements of SMEs are not as useful as those of larger companies to the various decision-makers. Lenders such as banks can always demand additional information from SMEs, and many owner-managers lack the financial knowledge to fully interpret their financial statements. The IASB has made progress in developing the Exposure Draft of its IFRS for SMEs. However, of fundamental interest to the various stakeholder groups of SMEs is whether the benefits of future compliance with these or other standards outweigh the costs.
|Number of pages||2|
|Publication status||Published - 2007|