Implementing IFRS for SMEs in practice: technical challenges from a Moroccan company

Abstract

Purpose This paper investigates the practical challenges faced by a Moroccan agro-industrial company during its transition from the national accounting framework code général de la normalisation comptable (CGNC) to the international financial reporting standards (IFRS) for small and medium sized entities (SMEs). The aim is to offer a detailed practitioner account of how technical requirements, organisational routines and fiscal pressures interact to shape the feasibility of adopting the standard in an emerging-market setting. Design/methodology/approach The study draws on a nine-month participant-observation within the company, complemented by extensive field notes, informal interviews with accounting and managerial staff, and analysis of internal documents. The narrative reflects an immersive engagement with daily accounting practices during the conversion process, allowing a rich, contextual understanding of the obstacles encountered. Findings The conversion revealed significant technical and organisational barriers. Inventory costing, asset revaluation, component accounting, depreciation methods, lease accounting, impairment testing and deferred taxation all proved considerably more complex in practice than suggested by the “simplified” label of the IFRS for SMEs. These technical difficulties were exacerbated by incomplete asset registers, limited staff familiarity with valuation and financial modelling, undocumented procedures and the dominance of fiscal rules over accounting judgement. Despite these obstacles, management viewed the adoption as symbolically important for investor credibility and internationalisation. Practical implications Adopting IFRS for SMEs in Morocco requires organisations to upgrade documentation practices, strengthen technical capabilities, improve internal systems and anticipate areas where the standard conflicts with fiscal norms. Regulators and professional bodies should provide contextualised guidance and consider transitional fiscal accommodations to ease adoption. Practitioners should assess internal readiness before initiating conversion to ensure that adoption is substantive rather than symbolic. Originality/value To the best of the author’s knowledge, this paper offers one of the first in-depth, practice-based accounts of IFRS for SMEs adoption in Morocco. By tracing the conversion process from within the organisation, it reveals how international standards interact with local institutional constraints and sheds light on the gap between formal adoptability and practical implementability in emerging-market environments.