Individual Determinants of IFRS for SMEs Adoption Intention in Morocco—A SEM Analysis

The International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) is a widely accepted accounting standard that caters to entities without public accountability and that release financial statements for general purposes. Although research on the adoption of this standard is still in its early stages, this study aims to examine the factors that influence its adoption among Moroccan SMEs from the Diffusion of Innovations (DoI) theory lens. By doing so, the study seeks to provide insights into the potential adoption of IFRS for SMEs in a pre-adoption and emerging context. Grounded in a survey of 84 Moroccan SMEs, our methodology is based on Structural Equation Modelling with both approaches (CB-SEM and PLS-SEM). This approach delves into elucidating firm-level factors underpinning the application of this standard by Moroccan SMEs. Our findings indicate that Moroccan SMEs are more likely to adopt IFRS for SMEs when it offers advantages that better align with their current practices, taking into account their unique requirements and accounting norms, as well as their specific business characteristics.