International Financial Reporting Standards for Small and Medium-sized Entities

Last Updated on 03/02/2020 by 75385885

Small and Medium-sized EntitiesSmall and Medium-sized Entities

International Financial Reporting Standard (IFRS) for Small and Medium-sized Entities

Section 1 Small and Medium-sized Entities

Intended scope of this Standard


1.1 The IFRS for SMEs is intended for use by small and medium-sized entities (SMEs). This section describes the characteristics of SMEs.

Description of small and medium-sized entities


1.2 Small and medium-sized entities are entities that: Small and Medium-sized Entities

  1. do not have public accountability; and Small and Medium-sized Entities
  2. publish general purpose financial statements for external users. Small and Medium-sized Entities

Examples of external users include owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies.

1.3 An entity has public … Read more

SME Concepts and Persuasive Principles

Last Updated on 03/02/2020 by 75385885

Section 2 SME Concepts and Persuasive Principles

Scope of this section

2.1 This section describes the objective of financial statements of small and medium-sized entities (SMEs) and the qualities that make the information in the financial statements of SMEs useful. It also sets out the concepts and basic principles underlying the financial statements of SMEs.

Objective of financial statements of small and medium-sized entities

2.2 The objective of financial statements of a small or medium-sized entity is to provide information about the financial position, performance and cash flows of the entity that is useful for economic decision-making by a broad range of users of the financial statements who are not in a position to … Read more

SME Financial Statement Presentation

Last Updated on 12/02/2020 by 75385885

Section 3 SME Financial Statement Presentation

Scope of this section

3.1 This section explains fair presentation of financial statements, what compliance with the IFRS for SMEs requires and what a complete set of financial statements is.

Fair presentation

3.2 Financial statements shall present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in Section 2 Concepts and Pervasive Principles:

  1. the application of the IFRS for SMEs, with additional disclosure when necessary, is presumed to result in financial statements that achieve
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SME Statement of Financial Position

Last Updated on 03/02/2020 by 75385885

Section 4 SME Statement of Financial Position

Scope of this section

4.1 This section sets out the information that is to be presented in a statement of financial position and how to present it. The statement of financial position (sometimes called the balance sheet) presents an entity’s assets, liabilities and equity as of a specific date—the end of the reporting period.

Information to be presented in the statement of financial position

4.2 As a minimum, the statement of financial position shall include line items that present the following amounts:

  1. cash and cash equivalents;
  2. trade and other receivables;
  3. financial assets (excluding amounts shown under (a), (b), (j) and (k));
  4. inventories;
  5. property, plant and equipment;
    (ea)
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SME Statement of Comprehensive Income and Income Statement

Last Updated on 12/02/2020 by 75385885

Section 5 SME Statement of Comprehensive Income and Income Statement

Scope of this section

5.1 This section requires an entity to present its total comprehensive income for a period—ie its financial performance for the period—in one or two financial statements. It sets out the information that is to be presented in those statements and how to present it.

Presentation of total comprehensive income

5.2 An entity shall present its total comprehensive income for a period either: Statement of Comprehensive Income and Income Statement

  1. in a single statement of comprehensive income, in which case the statement of comprehensive income presents all items of income and expense recognised in the period; or
  2. in two statements—an income
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SME Statement of changes in Equity and Statement of Income and Retained earnings

Last Updated on 19/12/2019 by 75385885

Section 6 Statement of Changes in Equity and Statement of Income and Retained Earnings

Scope of this section

6.1 This section sets out requirements for presenting the changes in an entity’s equity for a period, either in a statement of changes in equity or, if specified conditions are met and an entity chooses, in a statement of income and retained earnings.

Statement of changes in equity

Purpose

6.2 The statement of changes in equity presents an entity’s profit or loss for a reporting period, other comprehensive income for the period, the effects of changes in accounting policies and corrections of errors recognised in the period and the amounts of investments by, and dividends and … Read more

SME Statement of Cash Flows

Last Updated on 12/02/2020 by 75385885

Section 7 SME Statement of Cash Flows

Scope of this section

7.1 This section sets out the information that is to be presented in a statement of cash flows and how to present it. The statement of cash flows provides information about the changes in cash and cash equivalents of an entity for a reporting period, showing separately changes from operating activities, investing activities and financing activities.

Cash equivalents

7.2 Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. They are held to meet short-term cash Read more

SME Notes to the Financial Statements

Last Updated on 10/01/2020 by 75385885

Section 8 SME Notes to the Financial Statements

Scope of this section

8.1 This section sets out the principles underlying information that is to be presented in the notes to the financial statements and how to present it. Notes contain information in addition to that presented in the statement of financial position, the statement of comprehensive income (if presented), the income statement (if presented), the combined statement of income and retained earnings (if presented), the statement of changes in equity (if presented) and the statement of cash flows. Notes provide narrative descriptions or disaggregations of items presented in those statements and information about items that do not qualify for recognition in those statements. In … Read more

SME Consolidated and Separate Financial Statements

Last Updated on 19/12/2019 by 75385885

Section 9 Consolidated and Separate Financial Statements

Scope of this section

9.1 This section defines the circumstances in which an entity applying this Standard presents consolidated financial statements and the procedures for preparing those statements in accordance with this Standard. It also includes guidance on separate financial statements and combined financial statements if they are prepared in accordance with this Standard. If a parent entity by itself does not have public accountability, it may present its separate financial statements in accordance with this Standard, even if it presents its consolidated financial statements in accordance with full IFRS or another set of generally accepted accounting principles (GAAP).

Requirement to present consolidated financial statements

9.2 Except … Read more

SME Accounting Policies Estimates and Errors

Last Updated on 07/02/2020 by 75385885

Section 10 SME Accounting Policies Estimates and Errors

Scope of this section

10.1 This section provides guidance for selecting and applying the accounting policies used in preparing financial statements. It also covers changes in accounting estimates and corrections of errors in prior period financial statements.

Selection and application of accounting policies

10.2 Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

10.3 If this Standard specifically addresses a transaction, other event or condition, an entity shall apply this Standard. However, the entity need not follow a requirement in this Standard if the effect of doing so would not be material.

10.4 If … Read more