Aug 17, 2009
From the Financial Reporting Network
This edition of Issues In-Depth discusses the recently published IASB standard, International Financial Reporting Standard for Small and Medium-sized Entities (SMEs), which is designed to be a less complex alternative to full IFRS and potentially U.S. GAAP as well. U.S. entities without public accountability may be permitted to issue financial statements intended for general distribution prepared in accordance with IFRS for SMEs.
This Issues In-Depth describes the entities that are eligible to adopt IFRS for SMEs, compares IFRS for SMEs to U.S. GAAP, and explains the transition provisions of the standard. The new standard eliminates complex accounting policy elections in full IFRS, excludes topics that the IASB believes do not apply broadly to SME financial reporting, and contains far fewer disclosure requirements than either full IFRS or U.S. GAAP. The SME standard is effective immediately.