Adoption of Ifrs in Bulgaria Essay
In this essay we discuss the development and adoption of the International Financial Reporting Standards (IFRS) in the Republic of Bulgaria. Most of the characteristics and features apply not only to this country, but also to most developing economies in Europe. The IFRS are a set of standards which imply rules, methods and governance for reporting and interpreting financial data. The purpose of the IFRS is to develop a set of universal standards to be applied and comprehended worldwide, in order to achieve harmonization and standardization among reporting entities.
Bulgaria was accepted as a member of the European …show more content…
Furthermore, the IASB developed the IFRS to improve market efficiency of small to medium enterprises if used in unison with a suitable legislation provided by the governments. In Bulgaria the introduction of such laws was planned parallel to the standards which seems promising from regulation and management of markets point of view.
All the up-stated factors account for an overall increased possibilities for Bulgarian business and facilitation of international investments in the economy. Steps have to be taken in order to help and position the blooming economy, and the introduction of the IFRS is the first and maybe one of the most important ones for the integration of Bulgaria in the economy of the European Union and the rest of the world.
However, there has been an ongoing discussion among the Bulgarian business society and media and although everybody realizes the advantages and benefits that come along with the new standards, the small and medium enterprises were said not to be capable to last the change yet. Therefore the IFRS were made compulsory only for listed companies and the small to medium businesses were left the free choice whether to use it or the Bulgarian GAAP. There were several reasons for that, which were not underestimated.
To begin with, in the European Union the IFRS is