Application of IFRS for SMEs and Financial Quality in Commercial Firms in La Paz
Keywords:
IFRS for SMEs, financial information, small enterprises, financial accounting, Bolivia.Abstract
This article analyzes the relationship between the level of application of IFRS for SMEs and the quality of financial information in small commercial enterprises in La Paz, Bolivia, including barriers by dimensions. A quantitative, non-experimental, cross-sectional, descriptive-correlational study was conducted, with a complementary analysis of technical, organizational, and cultural barriers. The sample consisted of 60 commercial firms selected through non-probabilistic convenience sampling. A structured questionnaire was applied to accountants, owners, managers, and financial officers. The instrument measured regulatory knowledge, recognition, measurement, presentation, and disclosure; it also assessed reliability, comparability, and usefulness of financial information. Internal consistency was high (Cronbach's alpha = 0.89). The results show a medium level of application of IFRS for SMEs, with greater weaknesses in accounting measurement and information disclosure. Financial information quality was also at a medium level, with higher scores in usefulness and lower performance in comparability. Spearman's correlation showed a moderate positive association between standard application and financial quality (rho = 0.58; p < 0.001). It is concluded that the application of criteria associated with IFRS for SMEs strengthens the quality of financial information, but its development is conditioned by limited training, predominance of tax criteria, basic accounting software, and a weak disclosure culture.
References
Alegre Brítez, M. Á. (2024). Adopción y percepción de NIIF en empresas privadas de Paraguay. Trascender, Contabilidad y Gestión, 9(26). https://doi.org/10.36791/tcg.v9i26.256
Babbie, E. R. (2020). The practice of social research (15th ed.). Cengage Learning.
Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting and Business Research, 36(sup1), 5-27. https://doi.org/10.1080/00014788.2006.9730040
Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467-498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
Biddle, G. C., Hilary, G., & Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2-3), 112-131. https://doi.org/10.1016/j.jacceco.2009.09.001
Bonito, A., & Pais, C. (2018). The macroeconomic determinants of the adoption of IFRS for SMEs. Revista de Contabilidad - Spanish Accounting Review, 21(2), 116-127. https://doi.org/10.1016/j.rcsar.2018.03.001
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101. https://doi.org/10.1191/1478088706qp063oa
Consejo Técnico Nacional de Auditoría y Contabilidad. (2012). Resolución CTNAC N.º 001/2012: Vigencia de las Normas de Contabilidad Generalmente Aceptadas en Bolivia. https://www.auditores.org.bo/static/uploads/ctnac0012012.pdf
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16, 297-334. https://doi.org/10.1007/BF02310555
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344-401. https://doi.org/10.1016/j.jacceco.2010.09.001
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1-4. https://doi.org/10.11648/j.ajtas.20160501.11
Fanani, Z., Rahayu, A. P., & Erlando, A. (2024). Determining factors to implementing IFRS for SMEs: A study in International Accounting Standards Board countries. Cogent Business & Management, 11(1), Article 2420767. https://doi.org/10.1080/23311975.2024.2420767
Gonçalves, F. J. A., de Moura, A. A. F., & Motoki, F. Y. S. (2022). What influences the implementation of IFRS for SMEs? The Brazilian case. Accounting & Finance, 62(2), 2947-2992. https://doi.org/10.1111/acfi.12917
Hellman, N., Nilsson, H., Tylaite, M., & Vural, D. (2022). The impact of an IFRS for SMEs-based standard on financial reporting properties and cost of debt financing: Evidence from Swedish private firms. European Accounting Review, 31(5), 1175-1205. https://doi.org/10.1080/09638180.2022.2085758
Hernández-Sampieri, R., & Mendoza Torres, C. P. (2018). Metodología de la investigación: Las rutas cuantitativa, cualitativa y mixta. McGraw-Hill.
Hsu, Y.-L., Yang, Y.-C., & Wu, S.-B. (2024). A research note on earnings quality of private SMEs: The impact of IFRS adoption and Big Four auditor presence. Accounting in Europe, 21(2), 212-238. https://doi.org/10.1080/17449480.2024.2304308
IFRS Foundation. (2016). IFRS Standards-Jurisdiction profile: Bolivia. https://www.ifrs.org/content/dam/ifrs/publications/jurisdictions/pdf-profiles/bolivia-ifrs-profile.pdf
IFRS Foundation. (2018). Conceptual Framework for Financial Reporting. https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/
IFRS Foundation. (2025a). IFRS for SMEs Accounting Standard (3rd ed.). https://www.ifrs.org/content/dam/ifrs/publications/ifrs-for-smes/english/2025/ifrs-for-smes.pdf?bypass=on
IFRS Foundation. (2025b). 2025 IFRS for SMEs supporting materials. https://www.ifrs.org/supporting-implementation/2025-ifrs-for-smes-supporting-materials/
International Federation of Accountants. (2015). El uso de la NIIF para las PYMES en América Latina y el Caribe: Un breve análisis. IFAC. https://www.ifac.org/knowledge-gateway/discussion/el-uso-de-la-niif-para-las-pymes-en-america-latina-y-el-caribe-un-breve-analisis
Jonas, G. J., & Blanchet, J. (2000). Assessing quality of financial reporting. Accounting Horizons, 14(3), 353-363. https://doi.org/10.2308/acch.2000.14.3.353
Kaya, D., & Koch, M. (2015). Countries' adoption of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs): Early empirical evidence. Accounting and Business Research, 45(1), 93-120. https://doi.org/10.1080/00014788.2014.969188
Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology, 22(140), 1-55.
Salazar-Baquero, É. E. (2013). Efectos de la implementación de la NIIF para las PYMES en una mediana empresa ubicada en la ciudad de Bogotá. Cuadernos de Contabilidad, 14(35), 395-414.
Sassi, N., & Damak-Ayadi, S. (2023). IFRS for SMEs adoption, corporate governance, and quality of financial statements: Evidence from Dominican Republic and El Salvador. Journal of Accounting in Emerging Economies, 13(5), 922-946. https://doi.org/10.1108/JAEE-10-2021-0348
Schober, P., Boer, C., & Schwarte, L. A. (2018). Correlation coefficients: Appropriate use and interpretation. Anesthesia & Analgesia, 126(5), 1763-1768. https://doi.org/10.1213/ANE.0000000000002864
Siedlecki, S. L. (2020). Understanding descriptive research designs and methods. Clinical Nurse Specialist, 34(1), 8-12. https://doi.org/10.1097/NUR.0000000000000493
Sirembe, N., Moyo, V., & Oseifuah, E. K. (2025). International Financial Reporting Standards for Small and Medium-sized Enterprises and the quality of financial reporting: South African perspective. International Journal of Research in Business and Social Science, 14(1), 27-36. https://doi.org/10.20525/ijrbs.v14i1.3860
Sullivan, G. M., & Artino, A. R. Jr. (2013). Analyzing and interpreting data from Likert-type scales. Journal of Graduate Medical Education, 5(4), 541-542. https://doi.org/10.4300/JGME-5-4-18
Taherdoost, H. (2016). Validity and reliability of the research instrument: How to test the validation of a questionnaire/survey in a research. International Journal of Academic Research in Management, 5(3), 28-36. https://doi.org/10.2139/ssrn.3205040
Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International Journal of Medical Education, 2, 53-55. https://doi.org/10.5116/ijme.4dfb.8dfd
Vergara Arrieta, J. J., Puerta Guardo, F. A., & Huertas Cardozo, N. C. (2023). Implementación de las Normas Internacionales de Información Financiera (NIIF) para las pequeñas y medianas empresas (Pymes) en Colombia. Contaduría y Administración, 68(2). https://doi.org/10.22201/fca.24488410e.2023.2643
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Esteban Limachi Yujra
This work is licensed under a Creative Commons Attribution 4.0 International License.
La revista opera bajo el modelo Open Access, con una licencia Creative Commons Atribución 4.0 Internacional (CC BY 4.0). No se cobran tasas por publicación ni por acceso.
