The recent release of IFRS for Small and Medium-sized Entities (SMEs) will affect companies with multinational subsidiaries. Do you know what the potential impact will be on your company?
International Financial Reporting Standards ("IFRS") has been affecting US companies for some time — through their business dealings with non-US counterparties (particularly with customers and vendors), convergence between US GAAP and IFRS, or through non-US subsidiaries that have already adopted or are adopting IFRS for local statutory reporting or financing purposes.
For US companies with non-US subsidiaries, the impact of continued global IFRS adoption is likely to increase in the foreseeable future following the IASB’s recent issuance of IFRS for SMEs.
In this publication we take a closer look at recent developments in the UK, where detailed guidance has been proposed regarding the transition from local GAAP to IFRS for statutory reporting purposes. We also focus on the impact of IFRS for SMEs on US companies, including the importance of appropriate corporate headquarters involvement in the IFRS transition process of non-US subsidiaries.
For additional insight, our IFRS for SMEs: Pocket guide 2009, provides a high-level overview of the basic requirements and key areas covered by IFRS for SMEs.