IFRS in Small Island Economies : Problems and Challenges to the Private and Public-Sector Enterprises: Using Data from Mauritius

This paper studies IFRS problems and challenges faced by private-sector enterprises (PSEs) and state-owned enterprises (SOEs) in the context of Small Island Economies (SIEs). Using data from Mauritius the IFRS conversion and implementation process is investigated with focus on conversion cost and implementation problems. While the conversion cost is divided into four elements (training cost, IFRS software cost, advisory cost and audit fees) the implementation problems are expressed in terms of difficulties related to the IFRSs. The paper reports that though IFRS conversion was smooth in Mauritius, the conversion cost was significant. The costs were on the high side for the private sector compared to SOEs. Contrary to the findings of UNCTAD on other countries (such as India, Pakistan, Kenya), IFRS implementation was less difficult because FRS project was done by phases. In each phase appropriate infrastructure was put in place to sustain the IFRS project. As in many other countries (developed and emerging) Mauritius also has faced similar problems with certain IFRSs