SMEs financial reporting convergence : current developments

Abstract

The paper presents a qualitative research through content analysis of several reports concerning the roadmap for convergence of globally recognized financial reporting practices (US GAAP, IFRS). Firstly, we developed a conceptual framework for the evolution of standards’ convergence and further there is discussed the level of standards harmonization and convergence between US GAAP and IFRS as to October 2012. There might be pointed out that most topics did not follow the expected progress. Furthermore there are still some differences in the long-term project that are in process to be completed and other that were reassessed as a lower priority projects. The application part of this paper analyses the perceptions of Czech professional accountants from small and medium-sized companies (hereinafter SMEs) about current trends in international accounting and their possible adoption to local accounting practices. Results document the willingness of these accountants to follow international trends.