Previously, on July 09, 2009 the IASB has published IFRS for SMEs.
This IFRS was designed for use by small and medium-sized entities (SMEs). Within this of about 230 pages tailored standards, many of the principles in full version of IFRSs for recognising and measuring assets, liabilities, income and expenses have been simplified, topics not relevant to SMEs have been omitted, and the number of required disclosures has been significantly reduced.
So, what is the criteria of small and medium-sized entities who this standards applicable to ?
The definition of Small and medium-sized entities (SMEs) based on this standard are entities that :
(a) do not have public accountability, and
(b) publish general purpose financial statements for external users. Examples of external users include owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies.
An entity has public accountability if :
(a) its debt or equity instruments are traded in a public market or it is in the process of issuing such intruments for trading in a public market (a domestic or foreign stock exchange or an over-the counter market, including local and regional markets), or
(b) it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. This is typically the case for banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks.
Some entities may also hold assets in a fiduciary capacity for a broad group of outsiders because they hold and manage financial resources entrusted to them by clients, customers or members not involved in the management of the entity. However, if they do so for reasons incidental to a primary business (as, for example, may be the case for travel or real estate agents, schools, charitable organisations, co-operative enterprises requiring a nominal membership deposit, and sellers that receive payment in advance of delivery of the goods or services such as utility companies), that does not make them publicly accountable.
If a publicly accountable entity uses this IFRS, its financial statements shall not be described as conforming to the IFRS for SMEs - even if law or regulation in its jurisdiction permits or requires this IFRS to be used by publicly accountable entities.
A subsidiary whose parent uses full IFRSs, or that is part of a consolidated group that uses full IFRSs, is not prohibited from using this IFRS in its own financial statements if that subsidiary by itself does not have public accountability. If its financial statements are described as conforming to the IFRS for SMEs, it must comply with all of the provisions of this IFRS.
The complete IFRS for SMEs (together with the basis for conclusions, illustrative financial statements, and a presentation and disclosure checklist) can be downloaded free of charge from here : http://go.iasb.org/IFRSforSMEs.
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- New Option for Private Companies in Streamlined IFRS (JofA)
- Private Companies Get IFRS Made Easy (CFO.com)
Download from here : Deloitte - IFRS for SMEs in your pocket