The IFRS for SMEs were published by IASB in July 2009 and other Countries such as South Africa adopted the SME standards when they were still an exposure draft. The challenges bedevling the economy will poss serious challenges in the SME sector to be able to adopt the IFRS as some will not be able to meet the costs of training let alone implementing sound financial management systems for their businesses.
There is an opportunity for small businesses to formalise their financial reporting processes, facilitate access to finance and loans, and benefit from long term savings in less stringient IFRS reporting requirements.
Only about 400 disclosures are required instead of 3000 "full" IFRS disclosures. This is alongside simpler measurement and recognition requirements.
Dony Mazingaizo has an interest in IFRS and Financial Management
Subscribe to:
Post Comments (Atom)
ah this is an interesting development, wasnt even aware of it. am thinking of developing a credit rating model for SME's which they can use to access financing from the capital markets and banks. a standardised scaled down reporting framweork will definitely make this even closer...
ReplyDeleteThanks for the great information you share on this post.
ReplyDeleteIFRS Reporting and Accounting Services