Application of IFRS for SMEs by Salvadoran Companies in Their Financial Reporting

Abstract

The research was conducted to determine the extent to which Salvadoran companies are applying the International Financial Reporting Standard (IFRS) for Small and Medium-sized Entities (SMEs) within their accounting systems. The study was descriptive in nature, and the data collection techniques included contacting selected companies personally or by telephone and subsequently administering a survey.

According to the results obtained, it was found that most of the entities studied have adopted different sections of the Standard in accordance with the nature of their operating activities. Companies that have not yet implemented the Standard indicated that the main difficulties they face include high implementation costs, the need for effective training, very short deadlines for adoption, and a lack of awareness among senior management.