Practitioner Views on Financial Reporting for Smaller Entities

Gavin Reid and Julia Smith

No 701, CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: This paper has four purposes. First, to establish the policy background leading to a special financial reporting standard for small firms (FRSSE), aimed at reducing compliance costs. An indirect policy implication of this was that small firms would be stimulated, for example, in terms of start-up rate, performance (including survival, profitability, and growth), and contribution to employment and innovation within the economy. Second, to consider the implications for FRSSE itself on compliance costs, and to ask what forms they may take. Third, to analyse new evidence on adopters and non-adopters of the FRSSE. Fourth, to cast this new evidence into a cost effectiveness framework, to judge whether adopters who are engaged in upgrading of skills, to implement the FRSSE, have attained net benefit, compared to non-adopters, in so doing. The conclusion is that significant net benefit has indeed accrued to adopters.

Keywords: Small firms; financial reporting; compliance costs; cost-effectiveness. (search for similar items in EconPapers)
JEL-codes: G32 M13 M41 (search for similar items in EconPapers)
Date: 2007-01, Revised 2008-06
New Economics Papers: this item is included in nep-acc and nep-ent
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:san:crieff:0701

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