Insights from small and medium-sized enterprises in Colombia

Nelvis Ester Navarro Charris, Ingrid Faneth Cárdenas Cantillo, Enoc Barrientos Perez, Daniel Alberto Grajales Gaviria, Orlando Carmelo Castellanos Polo, Deiber E. Puello Cabarcas, Asunción Rodríguez Vital

Article ID: 6938
Vol 8, Issue 11, 2024

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Abstract


This study employs a mixed-methods approach to explore the financial ramifications and perceived hurdles of adopting international accounting guidelines on asset value reduction in small and medium-sized enterprises (SMEs) in Barranquilla, Colombia, over a recent multi-year timeframe. Through scrutiny of fiscal data and thorough dialogues with SME leaders and finance professionals, the investigation unveils significant industry-specific variations in the monetary impact of embracing these global standards. Manufacturing SMEs are found to shoulder a weightier burden compared to their counterparts in the service sector. The research underscores the pivotal role of perceived standard intricacy in molding the financial outcomes for SMEs, even when accounting for factors such as acquaintance with the guidelines and professional tenure. These discoveries augment our comprehension of global accounting standard adoption in emerging economies and accentuate the necessity for bespoke support mechanisms to assist SMEs in traversing the complexities of implementing these international norms. The insights gleaned from this inquiry can guide policymakers and accounting authorities in crafting sector-specific directives and resources. Such targeted assistance can aid SMEs in harmonizing with worldwide accounting practices while curtailing potential adverse effects on their fiscal performance.


Keywords


financial reporting; accounting standards; SMEs; asset impairment; industry-impacts

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References


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DOI: https://doi.org/10.24294/jipd.v8i11.6938

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