Splitting Accountability Hairs: Anomalies in the Adaptation of IFRS for SMEs in the UK and Ireland

Imam Arafat (Lead / Corresponding author), Theresa Dunne, Ahmed Hassan Ahmed

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)
133 Downloads (Pure)


Recent years have witnessed a significant shift in the financial reporting frameworks available in the UK and Ireland affecting entities of all sizes with the Financial Reporting Council issuing three financial reporting standards replacing the extant UK GAAP. This paper reports the results of a content analysis of 151 comment letters sent to the standard-setter in response to its policy proposal. The paper explains why the standard-setter stepped back from its controversial proposal to enforce IFRS for SMEs based on the absence of public accountability. Additionally, the standard-setter addressed all concerns positively apart from two, representing two anomalies. First, despite being opposed by the majority of the respondents, the standard-setter published a new framework for wholly-owned subsidiaries of listed companies allowing them to make substantially less disclosure. Second, the standard-setter is yet to respond to the call by the accounting profession and the Not-for-profit sector to publish a sector-specific framework.

Original languageEnglish
Pages (from-to)183-203
Number of pages21
JournalAccounting in Europe
Issue number2
Early online date25 May 2020
Publication statusPublished - 2020


  • IFRS for SMEs
  • accounting standards
  • lobbying
  • not for profit
  • public accountability
  • standard setting

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Finance


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