Difficulties in the Adoption of IFRS on Small and Medium Enterprises (SMEs) in Brazil

Abstract

In this chapter are showed how cultural factors influence accounting practices in different countries of the world, due to culture after the adoption of IFRS by SMEs in Brazil. It is based on a sample of 120 SMEs located in the state of Maranhão, Brazil. The SMEs were selected from a group that has been receiving accounting and financial advice since 2008. These companies are from a range of different sectors, but have in common the need to arrange bank financing in order to expand their activities. The results suggest that cultural impacts continue to prevail, such as the subordination to tax rules, but the disinterest of stakeholders in financial reporting provides a strong case to postpone the IFRS adoption process.