Abstract:

The main objective of this paper is to analyze the importance of the small and medium enterprises in the economy and the need for their financial reporting in accordance with IFRS for SMEs. The first part of the study focuses on the role and impact of SMEs in the European Union and in Romania. Also here are presented and discussed the specific characteristics of SMEs. In the second part the paper continues with addressing issues on the financial reporting of SMEs by synthesizing features of specialized literature. The paper ends with the presentation of the implementation of IFRS for SMEs and the main differences compared to the complete IFRS.