THE 2012 REVIEW OF IFRS FOR SMES: POSSIBLE RESPONSES FROM THE FIJI INSTITUTE OF ACCOUNTANTS

The International Accounting Standards Board (IASB) issued a paper reviewing the IFRS for SMEs in 2012 and invited public comments on changes the IASB had under consideration. There was no response from the Fiji Institute of Accountants (FIA), Fiji’s professional body and de facto accounting regulator, despite the fact that the Institute had contributed to the debate in 2007, when the initial draft of the Standard was under review. The FIA had applied the standard for reporting periods beginning on or after 1st January 2011.This study will determine the reason behind FIA’s non-response by interviewing two individuals with significant experience and knowledge in accounting regulation and standard setting in Fiji. The paper also investigates the challenges SMEs are facing by surveying audit firms. The findings indicate that SMEs are facing certain drawbacks which should have been conveyed by the FIA to the IASB in the 2012 review. The study provides preliminary evidence to suggest that FIA should make a substantive response in future reviews for IFRS for SMEs (such as the 2013 Exposure Draft).This response would also be useful for other developing countries that are facing similar issues/problems in the application of the IFRS for SMEs.