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International Financial Reporting StandardsInternational Financial Reporting Standards

Copyright © 2011 IFRS Foundati on. All ri ghts reserved.

2The IFRS for SMEs

Final standard issued July 2009

• 230 pages (full IFRSs are 3,000+)

• Simplified IFRSs – built on an IFRS foundation

• Simplifications based on: – User needs for information about short-term

cash flows, liquidity, and solvency

– Costs and SME capabilities

• Completely stand-alone

Copyright © 2010 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

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Jurisdiction Plans for AdoptionToday (Sept. 2011), to the best of our

knowledge:

– 74 jurisdictions have either adoptedthe IFRS for SMEs or stated a plan toadopt it within the next three years


4Plans for Adoption: Some Examples

• South America: Argentina, Brazil, Chile, Guyana.Peru, Suriname, Venezuela

• Caribbean: Antigua & Barbuda, Aruba, Bermuda,Bahamas, Barbados, Cayman, Dominica, Dominican

Republic, Guadeloupe, Jamaica, Montserrat, St Kitts-Nevis, St Lucia, Trinidad

• Central America: Belize, Costa Rica, El Salvador,Guatemala, Honduras, Nicaragua, Panama

• Africa: South Africa, Botswana, Egypt, Ethiopia,Ghana, Kenya, Lesotho, Malawi, Mauritius, Namibia,Nigeria, Sierra Leone, Tanzania, Swaziland, Uganda,Zimbabwe


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Plans for Adoption: Some Examples• Asia: Cambodia, Fiji, Hong Kong, Malaysia,

Myanmar, Nepal, Philippines, Singapore, Sri Lanka

• Middle East: Jordan, Lebanon, Palestine, Qatar

• Eurasia: Azerbaijan, Kyrgyzstan, Moldova, Turkey

• Europe: Bosnia, Macedonia. Available for use inSwitzerland. Planned: United Kingdom, Ireland.Others studying. Note that European Commission iscurrently consulting on the IFRS for SMEs.

• North America: Available for use in UnitedStates, Canada


6Implementation Support from IASB

Translations• Completed: Arabic, Armenian, Simplified Chinese,

Czech, French, Italian, Lithuanian, Polish,Portuguese, Romanian, Russian, Spanish, Turkish

• In process: Albanian, Hebrew, Japanese, Kazakh,Khmer, Macedonian, Mongolian, Serbian,Ukrainian

• Proposed or in discussion: Bosnian, Bulgarian,

Monthly IFRS for SMEs Update Newsletter • Free. Prepared by IASB staff.


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Implementation Support from IASBFree training materials• One module per Section, 28 completed

Free training workshops (regional, 3 days)• To date: Malaysia, India, Tanzania, Egypt, Gambia,

Brazil, Panama, Nordic countries, Caribbean,Singapore, Kazakhstan, Turkey, Argentina,Myanmar

• Upcoming: Barbados, Bosnia, Chile, Kenya, UAE,

SME Implementation Group• Publish implementation Q&As• Recommend to IASB needed modifications


8WSS Questionnaire

Has your jurisdiction adopted IFRS for SMEs?

– For which entities?

– Mandatory or optional?

– Make any modifications?

If no, why have you not adopted?

– Too difficult

– Local GAAP for SMEs

– SMEs prefer ‘tax accounts’

– IFRS for SMEs is under study

– Other reasons (please explain)Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

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WSS Questionnaire replies received Albania

Argentina

Australia

Austria

Bahamas

Belgium

Brazil

Cambodia

CanadaCzech Rep

Denmark

FranceCopyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

Germany

Hong Kong

India

Indonesia

Kosovo

Lebanon

Malaysia

Malta

MexicoNetherlands

N. Zealand

Norway

Poland

Russian Fed.

Sierra Leone

Singapore

Slovakia

S. Afr ica

Switzerland

Taiwan

TanzaniaTrinidad

Tunisia

USA

10WSS Questionnaire replies received


Not all respondents are represented in this

room.

– We invite those who are here to speak fortwo minutes or so on their jurisdict ion’s

decisions and experiences.

– The next 10 slides are for those countriesrepresented in the room.

– These are followed by slides for othercountries.

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WSS QuestionnaireJurisdiction: Albania

Representative: Mrs. Elira Hoxha. MrSelman Lamaj.


– No


– National GAAP for SMEs adopted


12WSS Questionnaire

Jurisdiction: Indonesia

Representative: Rosita Uli Sinaga. Ersa TriWahyuni.

Has your jurisdiction adopted IFRS for SMEs? – No


– National GAAP for SMEs adopted

– IFRS for SMEs is too difficult for most of ourSMEs


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WSS QuestionnaireJurisdiction: Japan

Representative: Toru Yoshioka


– No


– Not yet adopted full IFRSs

– National law requires conformity with anational standard for SMEs


14WSS Questionnaire

Jurisdiction: Kosovo

Representatives: Mr Fatmir Gashi and Mr. Agron Dida

Has your jurisdiction adopted IFRS for SMEs? – No


– National law requires all companies otherthan micros to use full IFRSs


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WSS QuestionnaireJurisdiction: Lebanon

Representative: Mr Walid Richani


– It is optional, but not formally adopted.


– IFRS for SMEs is too difficult for most SMEs

(currently) – SMEs prefer to prepare ‘tax accounts’



16WSS Questionnaire

Jurisdiction: Malaysia

Representative: Ms TAN Bee-Leng


– Not yetIf no, why have you not adopted?



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WSS QuestionnaireJurisdiction: Sierra Leone

Representative: Mr Abu Bakarr Conteh


– Yes (except for not-for-profits)

– Mandatory, unless an SME chooses fullIFRS

– We made no modifications


18WSS Questionnaire

Jurisdiction: South Africa

Representative: Ms Sue Ludolph


– Yes – Optional. SME can choose full IFRS or, if

below certain thresholds, can use anyaccounting policies it chooses.



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WSS QuestionnaireJurisdiction: Slovakia

Representative: Jan Holicka


– No


– Standard setter has adopted national GAAPfor SMEs

– SMEs prefer to prepare ‘tax accounts’


20WSS Questionnaire

Jurisdiction: Trinidad and Tobago

Representatives: Peter Gittens, Antony Pierre,Has your jurisdiction adopted IFRS for SMEs?

– Yes – We made no modifications

– SMEs may alternatively use full IFRSs


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WSS QuestionnaireJurisdiction: Argentina

Representatives: Not at this session


– Yes (for all entities without publicaccountability)


– SMEs may alternatively use full IFRSs or asimplified national GAAP for SMEs


22WSS Questionnaire

Jurisdiction: Australia



– No – We adopted ‘Reduced Disclosure Requirements’,

which comprises the recognition, measurement andpresentation requirements of full IFRSs as adoptedin Australia and substantially reduced disclosurescorresponding to those requirements.


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WSS QuestionnaireJurisdiction: Austria



– No


– National law prescribes other GAAP forSMEs



24WSS Questionnaire

Jurisdiction: Bahamas



– Yes – We made no modifications

– Alternatively SMEs may use full IFRSs


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WSS QuestionnaireJurisdiction: Belgium



– No


– IFRS for SMEs is too difficult for most of our SMEs

– National law prescribes other GAAP for SMEs – Standard setter has adopted national GAAP for

SMEs

– SMEs prefer to prepare ‘tax accounts’Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

26WSS Questionnaire

Jurisdiction: Brazil



– Yes – We made no modifications except toeliminate some allowed alternatives

– Alternatively SMEs may use full IFRSs


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WSS QuestionnaireJurisdiction: Czech Republic



– No


– Czech national GAAP enables the smaller

accounting units to keep their books insimplified manner and prepare their statutoryfinancial statements in a condensed form


30WSS Questionnaire

Jurisdiction: DenmarkRepresentatives: Not at this sessionHas your jurisdiction adopted IFRS for SMEs?

– No

If no, why have you not adopted? – National law prescribes other GAAP for

SMEs – IFRS for SMEs is under study – Possible conflicts with the European

Accounting Directives


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WSS QuestionnaireJurisdiction: Germany



– No


– National law prescribes other GAAP for

SMEs


32WSS Questionnaire

Jurisdiction: Hong Kong



– Yes – Alternatively SMEs can use full IFRSs

(HKFRSs) or simplified local GAAP for SMEs

– Modifications:

– Called Private Entities rather than SMEs

– Some changes in Sec 29 Income TaxesCopyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

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WSS QuestionnaireJurisdiction: India



– No


– Standard setter has adopted national GAAP

for SMEs – IFRS for SMEs is under study


34WSS Questionnaire

Jurisdiction: Malta



– NoIf no, why have you not adopted?

– Standard setter has adopted national GAAPfor SMEs


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WSS QuestionnaireJurisdiction: Mexico



– No


– Standard setter has adopted national GAAP

for SMEs


36WSS Questionnaire

Jurisdiction: Netherlands






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WSS QuestionnaireJurisdiction: Norway



– No


– National law prescribes other GAAP for SMEs

– Standard setter has adopted national GAAP forSMEs



38WSS Questionnaire

Jurisdiction: Poland






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WSS QuestionnaireJurisdiction: Russian Federation



– No






40WSS Questionnaire

Jurisdiction: Singapore



– Yes – Large unlisted companies must use full

SFRSs (nearly 100% IFRSs)

– Those eligible to use the SME standard mayalso choose full SFRSs


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WSS QuestionnaireJurisdiction: Taiwan



– No






42WSS Questionnaire

Jurisdiction: Tunisia




– We have one set of local GAAP for SMEs andpublicly accountable entities

– It is based on the 1995 IASs, though we haveadopted the 2001 IASB Conceptual Framework


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WSS QuestionnaireJurisdiction: United States of America



– Yes

– It is optional, but few have taken the option

– Alternatively SMEs can use US GAAP


© 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.ifrs.org

44Questions or comments?

Expressions of individual views by members

of the IASB and its staff are encouraged.

The views expressed in this presentation arethose of the presenter.

Official positions of the IASB on accounting

matters are determined only after extensive

due process and deliberation.

Thank you for your attention.

1109wss Sme

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