IFRS For SMES – The Key To Convergence

The IFRS for small and medium-sized entities (IFRS for SMEs) simplified framework is intended for use by entities which do not have public accountability. One of the main drivers for the standard is to facilitate the convergence of local standards with IFRS around the world. The decision as to which entities are required or permitted to use the new standard rests with the legislative and regulatory authorities and standard-setters in individual jurisdictions. How it will fit into a proposed UK converged framework is considered on page 9, but at present the standard cannot be applied in the UK.

Structure of the IFRS for SMEs

To facilitate ease-of-use the sections of the IFRS for SMEs are laid out by topic and there are also example accounts and a disclosure checklist. Accounting requirements of full IFRS have been simplified by: