SAICA Guidline on IFRS for SME’s
We have added to our website, the SAICA guideline on IFRS for SME’s (International Financial Reporting Standards)
This is offered to clients, to assist them in understanding their financial statements, and is used extensively on the workshop run at BizFacility on Understanding Financial Statements.
The IFRS for Small and Medium-sized Entities (IFRS for SME’s) is organised by topic, with each topic presented in a separate section. All of the paragraphs in the standard have equal authority. The standard is a stand-alone document with only one optional cross-reference to full IFRS for financial instruments, which relates to financial instruments (see section 11 and 12). The standard is appropriate for general purpose financial statements. General purpose financial statements are directed towards the common information needs of a wide range of users, for example, shareholders, creditors, employees and the public at large.
The International Accounting Standards Board (IASB) intends to issue a comprehensively reviewed IFRS for SME’s after this version has been in use for two years, to address any issues that may arise. Thereafter, a compilation of amendments will be issued every three years.
Objectives of IFRS for SME’s
To develop a set of high quality, understandable and enforceable global standards for SMEs.
The IFRS for SME’s will provide a framework that allows financial statements to be prepared for use by lenders, vendors and other creditors, outside investors, credit rating agencies, and other external parties.
The goal is to improve the SMEs’ access to capital. The resulting financial statements are likely to be useful for preparing tax returns or determining distributable income only after adjustments to reflect local laws.