assist micro-sized entities apply the IFRS for SMEs
In response to requests from constituents, the IASB has issued a Guide
for Micro-sized Entities Applying the IFRS for SMEs (2009). The
Guide contains guidance both to assist micro-sized entities currently
applying the IFRS for SMEs and to make the IFRS for SMEs
more accessible for those considering applying it in the future. The
guidance supports the IFRS for SMEs and does not constitute a
separate Standard for micro-sized entities.
The guidance has been developed with input from the SME
Implementation Group (an advisory body to the IASB). It extracts from
the IFRS for SMEs only those requirements that are likely to
be necessary for a typical micro-sized entity, without modifying any
of the principles for recognising and measuring assets, liabilities,
income and expenses. In a few areas, it also contains further
guidance and illustrative examples to help a micro-sized entity to
apply the principles in the IFRS for SMEs.
The guidance contains cross-references to the IFRS for SMEs
for matters not covered by the guidance. Consequently, having applied
the guidance, an entitys notes to the
financial statements and auditors report could refer to conformity
with the IFRS for SMEs because this guidance does not modify
the requirements of the IFRS for SMEs.
Click here to access the Guide.
continues discussions on the comprehensive review of the
IFRS for SMEs
The IASB met on 19 June to discuss the remaining issues in the
comprehensive review of the IFRS for SMEs. The following
issues were discussed at that meeting:
the first draft of a revised Section 29 Income Tax;
clarification of the exemption for subsidiaries
acquired with the intention of sale or disposal in consolidated
accounting for leases with an interest rate variation
clause linked to market interest rates;
accounting for the liability component of a compound financial
clarification of several requirements in Section
26 Share-based Payment.
The staff also provided the IASB
with a short summary of discussions from the IFRS Advisory Council on
the scope of the IFRS for SMEs, how to address changes to full
IFRSs during reviews of the IFRS for SMEs and the frequency of
future reviews of the IFRS for SMEs.
The IASB has now completed discussing the main issues identified
during the comprehensive review of the IFRS for SMEs. The next
step will be for the IASB staff to present to the IASB and the Due
Process Oversight Committee a summary of the due process steps
undertaken, before preparing an Exposure Draft of the proposed
amendments to the IFRS for SMEs.
To access the Agenda Papers and a recording of the meeting, please click here. A summary of the
decisions made at the meeting are available in the June 2013 IASB Update.
Foundation charts progress towards global adoption of full IFRSs
and the IFRS for SMEs
The IFRS Foundation has completed the first phase of an important
initiative to assess the progress towards global adoption of IFRS.
The G20 has called for global adoption of a single set of high
quality financial reporting standards. This initiative is intended to
provide a central source of information that permits interested
parties to chart jurisdictional progress towards the achievement of
that goal. As part of this initiative the IFRS Foundation is also
looking at global adoption of the IFRS for SMEs.
The completion of the first phase of this project resulted in the
publication of IFRS profiles for all G20 jurisdictions, as well as
profiles for a further 46 jurisdictions who responded to a survey of
national and regional bodies with overall responsibility for
accounting standards within their jurisdiction. The profiles also
include details of adoption of the IFRS for SMEs. The profiles
are available on the jurisdiction profiles section of
the IFRS website. A second phase of the project is under way and
further profiles will be posted on the website during the coming
months with the ultimate goal of providing profiles for most
jurisdictions in the world by the end of 2013. The jurisdiction
profiles were prepared by the IFRS Foundation under the direction of
former IASB member and Chairman of the SME Implementation Group Paul
Pacter on the basis of information from multiple sources.
Of the 66 jurisdictions that responded to the survey, 29 have adopted
the IFRS for SMEs. It is also currently under consideration in
a further 9 jurisdictions.
For the 29 jurisdictions that have adopted the IFRS for SMEs:
5 jurisdictions require the IFRS for SMEs for
all SMEs that are not required to use full IFRS.
12 jurisdictions give an SME a choice to use full IFRS
instead of the IFRS for SMEs.
11 jurisdictions give an SME a choice to use either
full IFRS or local GAAP instead of the IFRS for SMEs.
1 jurisdiction requires an SME to use local GAAP if it
does not choose the IFRS for SMEs.
the IFRS for SMEs, 24 of the 29 jurisdictions made no
modifications at all to its requirements. 5 jurisdictions made
modifications as follows:
2 jurisdictions (Argentina and Brazil) require use of
the equity method to account for investments in subsidiaries in
separate financial statements. The IASB currently has a project on
its agenda to consider a similar amendment to full IFRS (and this
will be considered for the IFRS for SMEs at a future review of
1 jurisdiction (Hong Kong) modified Section 29 Income
Tax to conform to the requirement of IAS 12 Income Taxes.
The IASB is considering whether to amend the IFRS for SMEs in
this regard as part of the comprehensive review of the IFRS for
SMEs currently under way.
1 jurisdiction (Saudi Arabia) has indicated that
modifications are under consideration that would be adopted before
the planned effective date of the IFRS for SMEs in 2014, but
it has not yet decided on those modifications.
1 jurisdiction (United Kingdom) has made several
modifications in adopting the IFRS for SMEs. Details can be
found in the United Kingdom profile.
Spanish-language translations of Module 19 Business
Combinations and Goodwill
Arabic and Spanish-language translations of Module 19 Business
Combinations and Goodwill are now available. Module 19 covers
Section 19 of the IFRS for SMEs, Business Combinations and
Goodwill, which applies to accounting for business combinations.
Section 19 provides guidance on identifying the acquirer, measuring
the cost of the business combination, and allocating that cost to the
assets acquired and liabilities and provisions for contingent
liabilities assumed. It also addresses accounting for goodwill both
at the time of a business combination and subsequently.
In total, 33 modules have now been translated into both Arabic and
Spanish and are available for download from the IFRS Foundation
website. All modules can be accessed here.
SMEs translations: status report
Here is the current status of the IFRS for SMEs translations
that have been approved by the IFRS Foundation:
Completed: Albanian,* Arabic, Armenian,* Bosnian,* Chinese
(simplified),* Croatian,* Czech,* Estonian,* French,* German,
Hebrew,* Italian,* Japanese,* Kazakh,* Khmer,* Lithuanian,*
Macedonian,* Mongolian,* Polish,* Portuguese,* Romanian,* Russian,*
Serbian, Spanish,* Turkish* and Ukrainian.*
Under discussion with the IFRS Foundation: Afrikaans,
Georgian, Kyrgyz and Turkmen.
*Available for free download here (for translations not marked with an * please see our
webshop for details on how to purchase a
Upcoming train the trainers workshops
For more details, click here.
Date: 19-21 August 2013
Location: Colombo, Sri Lanka
Instructors: Darrel Scott (Chairman of the SME Implementation
Group and IASB member) and Michael Wells (Director, IFRS Education
Sponsoring organisations: the Confederation of Asian and
Pacific Accountants (CAPA) and the Institute of Chartered Accountants
of Sri Lanka.
obtain IFRS for SMEs materials
online (available in multiple languages)
The Standard in hard copy
Information about the SME Implementation Group
Information about the Request for Information: Comprehensive
Review of the IFRS for SMEs
Information about guidance for micro-sized
entities applying the IFRS for SMEs
Q & As
'Train the trainers' workshops and presentation
Training materials in PDF format
IASB and staff presentations about the IFRS
Past copies of the IFRS for SMEs Update
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