The sme ifrs/ pme cpc convergence process under the optics of symbolic interaction

Abstract

The IASB (International Accounting Standards Board), concerned in adapting the International Accounting Standards for all sizes of companies, created the IFRS (International Financial Reporting Standard) for SME (Small and Medium Enterprises) in order to standardize the corporate accounting to companies that don?t have the rigor and structure of public companies. Despite the Certified Public Accounting determine that SMEs companies follow the CPC SMEs rules, due to the low level of structure and corporate governance, don?t have audit process and no need for disclosure of their financial reports to the market, many companies do not adapt to the CPC SMEs. Companies that converge to CPC SMEs derive from the decisions of their managers guided by their beliefs, values and previous experiences in companies that are obliged to use IFRS for the dissemination of its results. The objective of this theoretical essay is to reflect about the potential of symbolic interaction as an epistemological approach to understanding the process of convergence of small and medium enterprises in Brazil to CPC SMEs. These beliefs, values and previous experiences can be informed by the Symbolic Interactionism providing a management style that drives the convergence of enterprises SMEs to the adoption of international standards as a process and standard of accounting rules in practice.