Practitioner views on financial reporting for smaller entities

Gavin C. Reid, Julia A. Smith

Research output: Working paperDiscussion paper

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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 rate, and 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 engage in upgrading of skills to implement the FRSSE had attained a net benefit as compared to non-adopters. The conclusion, based on this preliminary evidence, is that upgrading of skills to implement the FRSSE has indeed led to a significant net benefit.
Original languageEnglish
Place of PublicationSt Andrews, United Kingdom
Number of pages30
Publication statusPublished - Jan 2007


  • small firms
  • financial reporting
  • compliance costs
  • cost-effectiveness
  • business studies


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