Using unique data where SMEs choose between standard sets we document standard choices, accounting quality, and cost of debt among 1,787 SMEs. We find that 99% use Swedish GAAP, and comparing Gazelles to Non-Gazelles; we find Gazelles are more prone to pick individual SFASC/IFRS standards. We investigate accounting quality and find little difference between the groups. We find that creditors able to assess credit risks regardless of financial reporting quality resulting in lower cost of debt for Gazelles. We show that accounting regulation is less important to SMEs who manage to provide creditors with information to assess the credit risk regardless. The reluctance to switch accounting standards suggests that financial reporting would not improve if “better” standards were enforced. This supports efforts to ease regulatory requirements for small firms such as the European Commission’s publication of the report “Less regulatory burden for small businesses” and raise the question whether the IASB’s project IFRS for SMEs is worthwhile.