IFRS for SMEs: A less taxing standard?

December 2009
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IFRS for SMEs: A less taxing standard?

At a glance

This PwC article highlights key provisions of the income tax accounting guidance contained in the IFRS standards for small and medium-sized entities.



On July 9, 2009, the IASB published the International Financial Reporting standard for small and medium-sized entities ("IFRS for SMEs" or "the standard"), a self-contained standard of about 230 pages designed to ease the burden of IFRS reporting for entities that do not have public accountability.

The new standard includes significant differences from existing IFRS and US GAAP related to accounting for income taxes. This article highlights key provisions of the income tax accounting guidance contained in the standard and provides comparison to existing IFRS, the IASB's proposed exposure draft on income taxes and US GAAP, as well as our observations of the potential impact of these provisions within IFRS for SMEs.