The International Federation of Accountants
(IFAC) and its Small and Medium Practices (SMP) Committee welcome the release
of the International Financial Reporting Standard for Small and Medium-sized
Entities (IFRS for SMEs) by the International
Accounting Standards Board (IASB). IFAC encourages its 157 member
organizations to carefully consider how to use the standard in their respective
jurisdictions.
“This global accounting standard represents a
very significant step on the path to global convergence of financial reporting
practices by SMEs. It will contribute to enhancing the quality and comparability
of SME financial statements around the world and assist SMEs in gaining access
to finance,” remarks IFAC Chief Executive Ian Ball, adding, “The beneficiaries
will be not only SMEs, but also their customers, clients, and all other users
of SME financial statements.”
IFAC, largely through its SMP Committee, has
been closely following and supporting this project since its inception. It has
provided input to the IASB to assist it in reaching a solution that will
contribute to the quality of SME financial reporting without placing costly and
unnecessary compliance burdens on SMEs.
Sylvie Voghel,
chair of the IFAC SMP Committee, points out, “This standard is a significant
development; however, its issuance is not the end of the story, but rather the
opening chapter. Consistent and effective implementation will demand a
concerted international effort to mobilize the necessary support for companies
and preparers. The development of free training materials by the International
Accounting Standards Committee Foundation is a very positive step in this
direction.”
Ms. Voghel adds, “The IASB will also need to
monitor the implementation of the IFRS for SMEs and be prepared to
revise and update it. Such flexibility is key to ensuring its continued
relevance and usability.”
IFAC is currently considering the role it can play together with its
member bodies to facilitate implementation of the new standard.
About IFAC
IFAC (www.ifac.org)
is the global organization for the accountancy
profession dedicated to serving the public interest by strengthening the
profession and contributing to the development of strong international
economies. IFAC is comprised of 157 members and associates in 123 countries and
jurisdictions, representing more than 2.5 million accountants in public
practice, education, government service, industry, and commerce.
