Flinder Values

Copyright © 2011 IFRS Foundation. All rights reserved.

2

The International Financial Reporting Standards for Small and Mediumsized Entities (IFRS for SMEs)

Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

1

The IFRS for SMEs

3

Good Financial Reporting Made Simple. • 230 pages (full IFRSs are 3,000+) • Simplified IFRSs – built on an IFRS foundation • Completely stand-alone • Why? Designed specifically for SMEs – User needs for information about short-term cash flows, liquidity, and solvency – Costs and SME capabilities • Final standard issued July 2009

Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

Who is eligible to use it? Any entity that does not have public accountability... – securities not publicly traded – not a financial institution ... and is required or chooses to produce General Purpose Financial Statements (GPFS)

4

Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

2

Who is the Standard aimed at?

5

Millions of companies (over 99%)! • The 52 largest stock exchanges in the world together have about 45,000 listed companies • Europe has roughly 28 million private sector enterprises (SMEs) • USA has about 25 million • UK: 4.7 million (99.6% under 100 employees) • Chile: 700,000 (only 6,000 have sales > US$3 million) • Brazil: 6 million

Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

The public interest Which entities must produce GPFS is a public interest issue – Decided by parliaments and regulators, not by IASB – Why? There is a public benefit in good financial information about companies

6

Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org

3

How did we simplify?

7

1. Some topics in IFRSs omitted if irrelevant to private entities 2. Where IFRSs have options, include only simpler option 3. Recognition...