IFRS for Small and Medium-sized Entities (SME)

Recent proposals made by the UK Accounting Standards Board (ASB), would mean that UK and Irish GAAP as we currently know it would cease to exist and be replaced by the International Accounting Standards Board’s IFRS for SMEs for a large number of private entities.

The standard is intended to apply to entities that do not have public accountability and that publish general purpose financial statements for external users.

Entities are deemed to have public accountability if they have debt or equity instruments traded in an active market, are in the process of issuing debt or equity instruments for trading in a public market or hold assets in a fiduciary capacity for a broad group of outsiders. Close Box

Companies should start planning and working on the basis that the ASB may require adoption of IFRS for SMEs in Ireland by 2012. With the opening balance sheet for December 2012 year ends as at 1 January 2011, related conversion decisions may need to be considered as early as 2010.

To discuss the impact that these developments will have on your entity’s financial statements please call your usual PwC contact, Fiona Hackett (+353 1 792 5413) or Irene O’Keeffe (+353 1 792 8563).

Please see the following for more detail on the IFRS for SMEs:

IFRS for SME Pocket Guide
This pocket guide provides a summary of the recognition and measurement requirements in the ‘IFRS for small and medium sized entities’ published by the International Accounting Standards Board in July 2009.

Similarities and differences: A comparison of Irish GAAP and IFRS for SMEs
Provides a broad understanding of the significant measurement and disclosure differences between ‘International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs)’ and Irish GAAP. It focuses on a selection of those differences most commonly found in practice.

Similarities and differences: A comparison of ‘full IFRS’ and IFRS for SMEs
This publication provides a broad understanding of the significant differences between ‘International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs)’ and ‘full’ IFRS. It focuses on a selection of those differences most commonly found in practice.