IASB publishes Guide for Micro-sized Entities Applying the IFRS for SMEs (2009 edition)

27 June 2013

The International Accounting Standards Board (IASB) today issued guidance to help micro-sized entities apply the IFRS for Small and Medium-sized Entities (IFRS for SMEs).

The IFRS for SMEs is a set of high quality financial reporting principles that is derived from the full set of IFRSs but tailored for the needs and capabilities of non-publicly accountable companies, estimated to account for over 95 per cent of all companies around the world, and users of their financial statements.

The IFRS for SMEs has been widely accepted around the world, with more than 80 jurisdictions having already adopted or planning to adopt the Standard. In some of these jurisdictions the IFRS for SMEs is being used by very small companies with just a few employees. In response to requests from constituents, the IASB has developed guidance both to assist micro-sized entities currently applying the IFRS for SMEs and to make the IFRS for SMEs more accessible for those considering applying it in the future. The guidance supports the IFRS for SMEs and does not constitute a separate Standard for micro-sized entities.

The guidance has been developed with input from the SME Implementation Group (an advisory body to the IASB). It extracts from the IFRS for SMEs only those requirements that are likely to be necessary for a typical micro-sized entity, without modifying any of the principles for recognising and measuring assets, liabilities, income and expenses. In a few areas, it also contains further guidance and illustrative examples to help a micro-sized entity apply the principles in the IFRS for SMEs.

The guidance contains cross-references to the IFRS for SMEs for matters not covered by the guidance. Consequently, having applied the guidance, an entity´s notes to the financial statements and auditor´s report could refer to conformity with the IFRS for SMEs because this guidance does not modify the requirements of the IFRS for SMEs.

Hans Hoogervorst, Chairman of the IASB, commented:

"The IFRS for SMEs has already been a remarkable success, having been adopted by more than 80 countries and used by millions of companies worldwide. The guidance published today will greatly help smaller companies to provide financial statements in line with globally recognised Standards."

More information about the IFRS for SMEs is available at http://go.ifrs.org/IFRS-for-SMEs.


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