Roohalah Seddighi; Mohammad Marfou; Ali Ghasemi
Abstract
International Financial Reporting Standards for Small and Medium Sized Entities (IFRS For SMEs) is a set that has less requirements than international financial reporting standards. Small and medium enterprises are being adopted in many countries and these standards are under consideration in Iran. It ...
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International Financial Reporting Standards for Small and Medium Sized Entities (IFRS For SMEs) is a set that has less requirements than international financial reporting standards. Small and medium enterprises are being adopted in many countries and these standards are under consideration in Iran. It is necessary that this set of standards be examined before application. In the present study, by using the fair value approach in SME reporting standards, the impact of this approach on the performance indicators based of SME-standards has been investigated. The main purpose of this study is to investigate changes in performance indicators after applying SMEs standards.The statistical population of this research is the subsidiry companies of the public companies whose activities are investment and 95 companies selected as sample. The research period is 2015 to 2017. Therefore, using historical data in the audited financial statements of these companies and the fair value of the investment portfolio of these companies based on the trading portfolio and the report on the status of the portfolio in the codal website, changes in return on assets ratio (ROA) and return on equity ratio (ROE) as performance indicators, is evaluated statistically after applying the fair value approach and compared with the indicators based on Iran's accounting standard. The results indicated that the ratio of return on assets and return on equity as performance indicators, after the implementation of the International Financial Reporting Standard for small and medium sized entities did not change significantly.
