This article assesses the effects of the implementation of the International Financial Reporting Standard for Small and Medium Enterprises on registered building construction companies in the Panama City district. For the development of the research, a population representing the sample of 79 companies was considered. The methodology used consisted of two surveys that were carried out with the Likert scale question design to make the collection of information more efficient, applied to the owners or managers and collaborators of the accounting area of ??a pilot test of 12 people who form part of the population of 79 companies. The data was analyzed with the help of the SPSS statistical program. The obtained results evidenced a reliable accounting, improvements in the quality of the information for the preparation of the financial statements for economic and financial decision making. In conclusion, the implementation of the International Financial Reporting Standard for Small and Medium-Sized Companies implies transparency in their financial activity, comparability and reliability of their financial reports, competitiveness in the markets and compliance with national and international legal regulations.