This pocket guide provides an overview of the basic requirements and key areas covered by the 'IFRS for small and medium-sized entities' standard, published by the International Accounting Standards Board (IASB) in July 2009. It is written for those who have little or no knowledge of full IFRS, but who have a reasonable understanding of basic accounting concepts and terminology.
The definition of 'small and medium-sized entities' in the context of the IFRS for SMEs is based on the nature of an entity rather than on its size. The definition of 'SMEs' is entities that do not have public accountability but that publish general purpose financial statements ('public accountability' covers entities with or seeking to have securities traded in a public market or that hold assets in a fiduciary capacity as their main business activity). It is a matter for authorities in each territory to decide which entities are permitted or even required to apply IFRS for SMEs.