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Overview of IFRS
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IFRS VS IFRS for SME - A Streamlined Reporting Standard
Financial Reporting Standard for Small and Medium-sized Entities
(IFRS for SMEs) as of 31 December 2012 is designed to apply to all
entities that do not have public accountability.
The International Accounting Standards Board (IASB) developed the
IFRS for SMEs in recognition of the cost and difficulty to
realtively small private entities of preparing fully compliant IFRS
information. The IASB also recognised that users of private entity
financial statements may have a different focus from those
interested in publicly listed companies.
The IFRS for SMEs attempts to meet needs whilst trying to balance
the costs and benefits to the preparers of the financial
statements. The IFRS for SMEs is a stand-alone standard and does
not require cross-referencing to IFRSs.
In addition, the IFRS for SMEs contains fewer disclosure
requirements in a dramatically shorter document compared to IFRSs
and therefore appeals to both the users and preparers of financial
The IFRS for SMEs standard is potentially available for immediate
use, however it is for the relevant standard setters and
authorities in each country to decide which entities are permitted
and/or required to apply IFRS for SMEs.
The purpose of this publication is to help preparers and users
understand the differences that exist between IFRS for SMEs and
IFRSs as issued by the IASB. It is only intended to provide a high
level overview of the major differences and is not intended to be a
comprehensive list of all differences that users and preparers
should be aware of. This publication does not deal with the
consequences of local law on the preparation of financial
statements and additional significant differences may arise when
comparing the requirements of the IFRS for SMEs to the legal
requirements in a particular jurisdiction.