MACROECONOMIC DETERMINANTS OF THE ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARD FOR SMALL AND MEDIUM-SIZED ENTITIES

Abstract

Small and medium-sized enterprises (SMEs) play a vital role in the economy, therefore, their financial reporting must be efficient, transparent, and comprehensible. The first IFRS for SMEs was issued in 2009, and the most recent amendments were introduced in 2025 to better address the needs of SMEs. This paper reviews the latest updates of the IFRS for SMEs. The main objective of this scientific article is to identify the macroeconomic determinants influencing the adoption of IFRS for SMEs. The study is based on an analysis and synthesis of scientific literature, summarization and comparison methods, OpenAI tool generated analysis of regulatory chantes of IFRS for SMEs, as well as secondary data analysis and graphical visualization. The results reveal that the IFRS for SMEs continues to be improved and is applied to entities without public accountability. Regarding macroeconomic determinants, different researchers obtain varying results when examining the same macroeconomic determinants, suggesting that further research in this field is necessary to better understand the macroeconomic determinants influencing the adoption of IFRS for SMEs.