IFRS for SME:
1. Aim of SME Accounting Standards: To provide relevant, reliable, and useful financial information for SMEs.
2. IFRS for SMEs: An alternative to full IFRS, simplified for SMEs.
3. Excluded Topics: Earnings per share, interim reporting, segment reporting, insurance, and assets held for sale.
4. Disallowed Treatments: Capitalizing borrowing costs, and development costs.
5. Simplified Accounting: Simpler methods for SMEs compared to full IFRS.
6. Financial Instruments: Primarily at amortized cost, exceptions for certain investments.
7. Transition: Allows exemptions from IFRS 1, including impracticability exemptions.
8. Reduced Disclosures: Requires less than 10% of disclosures compared to listed companies.
9. SME Definition: No universal definition, often based on employee count, assets, or revenue.
10. Eligibility: Intended for entities with no public accountability.
11. National Regulations: Eligibility criteria often specified by national authorities.
12. Full Adoption: Must apply the SMEs Accounting Standard in its entirety.
13. Focus of Full IFRS: Primarily designed for listed companies, not SMEs.
14. Cost-Benefit for SMEs: The cost of complying with full IFRS may outweigh the benefits for SMEs.
15. Simplifications in SMEs Accounting Standard: Goodwill amortization, simplified pension calculations, cost model for investments.
16. Reduced Reporting Burden: Justification for the SMEs Accounting Standard.
17. Two-Tier Reporting: Potential concern about different reporting requirements.
18. Self-Contained Framework: Based on full IFRS but simplified.
19. Limited Revisions: Expected to be revised every three years.
20. Benefits of SME Accounting Standard: Improved comparability, enhanced confidence, reduced costs, and easier transition to full IFRS.
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