The International Accounting Standard Board (IASB) on 9th July 2009 had released the International Financial Reporting Standard (IFRS) to be adopted by Small Medium Enterprises (SMEs). It is expected that not less than 35 countries, including Malaysia will adopt this standard. However, Malaysia has adopted its own version of the standard called Malaysian Private Entities Reporting Standards (MPERS). This move has resulted in a mix response among market players including business owners, accounting bodies and also the government. The purpose of this paper is to discuss the benefits and adverse consequences together with the challenges of the adoption of the said standard for SMEs especially in Malaysia.
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