Small and medium-sized business
A very special standard prepared by the IASB is its IFRS for SMEs. There is a chapter devoted to this later (Chapter 7). Essentially it stands to one side of the other IFRS and is intended to be a stand-alone, complete set of accounting standards for small and medium-sized business. It aims to cover most transactions that a simpler company might be likely to encounter and was drafted with a company with about 50 employees in mind – not that small!
When a country mandates the use of IFRS, this does not include the SME standard; however, some countries – such as the UK – are planning to use it for all but the smallest privately held companies. The rules are very similar to IFRS but there are some simplifications. The standard also includes a cut-down conceptual framework.
Get An Executive Guide to IFRS: Content, Costs and Benefits to Business now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
