Proposals from the International Accounting Standards Board (IASB) to improve understanding, and avoid undue cost or effort in applying, the International Financial Reporting Standard for small and medium-sized enterprises (IFRS for SMEs), have been welcomed by ACCA (the Association of Chartered Certified Accountants).
The global body for professional accountants’ Global Forum for Corporate Reporting responded to the IASB’s consultation on the proposed amendments to the Standard.
Although it is welcomed by the forum, it feels that the IASB could have gone further even in these early stages of the life of the IFRS for SMEs.
Richard Martin, ACCA’s head of corporate reporting, said: 'We discussed the proposals at great length in the Global Forum and we came to the conclusion that although the changes are in accordance with the IASB’s aims for the current revision project, options which have received support are not being included on the grounds of complexity and the absence of a similar option in full IFRS.
'It would also be good if the IASB considers how IFRS for SMEs can help the smallest preparers further, as the Standard does still cover some potentially very large companies.'
There will be approximately 80 countries across the globe that are eligible to adopt or adapt IFRS for SMEs into their legislations in the next year.
Richard Martin concluded: 'The Standard is not endorsed by the EU, but the UK and Ireland have revised national standards to be broadly in line with it.
'There are also some options and provisions they have chosen which are in the full IFRS, but not in the IFRS for SMEs, but are still in line with common local accounting practice.'
ACCA’s full consultation response can be found via the 'Related Links' section, left of this article.
Richard Martin and Paul Cooper, ACCA’s corporate reporting manager, are also featured in a video explaining the proposed changes to IFRS for SMEs, which can also be found via the 'Related Links' section.