Auditors’ Views on the Implementation of an IFRS-based Model: Qualitative Evidence from Portugal

Silva, A. P., Fontes, A. S., & Martins, A. (2025). Auditors’ Views on the Implementation of an IFRS-based Model: Qualitative Evidence from Portugal. Innovar, 35(95). https://doi.org/10.15446/innovar.v35n95.102354

This study examines Portuguese auditors' perceptions of the IFRS-based accounting model (SNC) implemented in 2010. Drawing on institutional theory, it explores how auditors—key actors in financial reporting—view its relevance, benefits, and challenges. Based on interviews with 16 experienced auditors, findings reveal strong support for the model’s international alignment, enhanced legitimacy, and improved financial statement credibility. Auditors praised its principles-based approach and fair value measurements for increasing transparency and adaptability. However, challenges persist, such as overly technical language from literal translations, difficulties with fair value due to limited market data, and excessive complexity in Notes. The coexistence of three reporting tiers under SNC also undermines comparability. Despite these issues, most auditors believe the IFRS-based model has elevated their professional visibility and responsibility. The research concludes that, while Portugal faced adaptation hurdles, the transition has largely been successful. It offers valuable insights for other countries with similar legal and economic contexts considering IFRS implementation.