Student Enterprise Course Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course OUR PROJECT CONCERNS The adaptation of international accounting frameworks ◦ IFRS ◦ IFRS for SMEs Their significant impact of the world of accounting and business processes The possible advantages of introducting a worldwide well accepted new system in Hungary
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course ABOUT IFRS/IFRS FOR SMES An IFRS for SMEs has clear benefits for investors, lenders and those seeking to raise finance through the transparency afforded by a consistently applied global set of financial reporting standards. Aim: Providing a standard for entities in countries that have no national GAAP. Offering an alternative IFRS standard that will be recognised and understood across different territories.
THE TEAM WORK Study of IFRS & IFRS SMEs IFRS Basic Course Designing the method of the research Designing the online questionnaire Analyzing the database Contacting companies Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course
RELATIONSHIP WITH THE CLIENT Weekly meetings Invitation to courses Daily contact via and phone Sustain a real business relationship ASSOCIATION WITHIN THE GROUP Meetings 2 or 3 times per week Long discussions about the project Daily contact via and phone Cooperation Listen&Respect each other’s opinion Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course
RISK AND BARRIERS Unknown existence of IFRS for SMEs Rejection of the surveys The entities cling to the general accounting frameworks Changeover to IFRS for SMEs is relatively expensive (training costs, etc.) Time limit Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course
STATISTICAL ANALYSIS The questionaire was sent to approximately 2000 companies with a revenue above 1 billion Forints. 2 % of the companies anwered the questionaire. Mostly CFOs, auditors or accountants of the companies answered the sheet, as it was meant to be answered by them. 48% of the respondents says that it would be useful using IFRS because of international suppliers, and other 14% of the them wants to get credit from abroad. All of these companies (100%) do not follow any other accounting standars than the Hungarian Accounting Standards (HAS). Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course Why might IFRS be useful for Your company? 8% 14% 48% 11% 3% 16% To be quoted on stock exchange To get credit from abroad Because of international suppliers To plan an acquisition To get out of business To sell business share
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course % of the respondents said that they have heard of IFRS before. According to the following question, most of them hardly IFRS, and none of them know it well.
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course We have almost the same results for the level of IFRS knowledge and for the question how widely IFRS is used in Hungary, which is fairly interesting. No one said that IFRS is widely used in Hungary.
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course % knows that companies that are quoted on any EU stock exchanges must report by IFRS as well. 25 % took a course about IFRS. We have the same results for the uestions asking „Do You see any advantages using IFRS?” and „Would You like to use an international accounting system that helps Your company be more transparent?”
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course According the results of some following questions, almost all of them (80%) wants to get more information about IFRS for SMEs, but they do not know where to get that information.
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course
Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course