Student Enterprise Course Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course 2010.12.06

Student Enterprise CourseStudent Enterprise Course

Adoption of IFRS and IFRS for SMEs in Hungary

Student Enterprise Course

2010.12.06.



2010.12.06.

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



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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 WORKStudy of IFRS & IFRS SMEs

IFRS Basic Course

Designing the method of the research

Designing the online questionnaire

Analyzing the database

Contacting companies



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RELATIONSHIP WITH THE CLIENT Weekly meetings

Invitation to courses

Daily contact via email 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 email and phone Cooperation Listen&Respect each other’s opinion



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RISK AND BARRIERSUnknown 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



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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).



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Why might IFRS be useful for Your company?

8%14%

48%

11%3%

16%

To be quoted on stockexchangeTo get credit from abroad

Because of internationalsuppliersTo plan an acquisition

To get out of business

To sell business share



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Have You ever hear of IFRS before?

71%

29%

YES

NO

71% 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.

0

5

10

15

20

25

30

35

Hardly Moderately Well

How do You know IFRS?



2010.12.06.

0

5

10

15

20

25

30

35

40

Hardly Moderately Well

How widely is IFRS used in Hungary

Have You ever heard about IFRS for SMEs?

41%

59%

YES

NO

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.



2010.12.06.

0

5

10

15

20

25

YES NO

Did You know that IFRS helps invesment decision-making?

Did You know that IFRS is used in more than 100 countries and even more are planning to use it?

52%

48%YES

NO



2010.12.06.

Did You know that the USA is planning to use IFRS?

9%

91%

YES

NO

77 % knows that companies that are quoted on any EU stock exchanges must report by IFRS as well. 25

% took a course about IFRS.Do You see any advantages using IFRS?

64%

36%

YES

NO

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?”



2010.12.06.

Can You imagine using only IFRS in Hungary?

50%50%YES

NO

Do You see any advantages using IFRS for SMEs in Hungary?

68%

32%

YES

NO

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.



2010.12.06.



2010.12.06.

Documents

Student Enterprise Course Adoption of IFRS and IFRS for SMEs in Hungary Student Enterprise Course 2010.12.06