In June 2013, the International Accounting Standards Board (IASB) issued guidance to help micro-sized entities apply the 2009 IFRS for SMEs Accounting Standard.
Why?
Over 80 jurisdictions have either adopted the IFRS for SMEs Accounting Standard or stated a plan to do so within the next few years. In some of these jurisdictions the IFRS for SMEs Accounting Standard is being used by very small companies with just a few employees. The IASB was asked and agreed to develop guidance suitable for micro-sized entities currently applying the IFRS for SMEs Accounting Standard and also those considering doing so in the future.
How?
The guidance was developed with input from the SME Implementation Group (SMEIG). It extracts from the IFRS for SMEs Accounting Standard only those requirements that are likely to be necessary for a typical micro-sized entity, without modifying any of the principles for recognising and measuring assets, liabilities, income and expenses. In a few areas, it also contains further guidance and illustrative examples to help a micro-sized entity to apply the principles in the IFRS for SMEs Accounting Standard.
The guidance contains cross-references to the IFRS for SMEs Accounting Standard for matters not covered by the guidance. Consequently, having applied the guidance, an entity's notes to the financial statements and auditor's report could refer to conformity with the Standard because this guidance does not modify the requirements of the Standard.
Updates to the guidance after the 2015 Comprehensive review
In 2015, the IASB made limited amendments to the Standard after a comprehensive review. The amendments are effective for annual periods beginning on or after 1 January 2017. We do not expect these amendments to have a significant effect on a micro-sized entity's financial reporting practices and financial statements.
We are currently assessing the benefits of an electronic solution to updating the micros-sized entities guide for the 2015 amendments.
- A Guide for Micro-sized Entities Applying the IFRS for SMEs (2009)
- Una Guía para Micro Entidades que apliquen la NIIF para las PYMES (2009)
The Guidance is free to download for private, non-commercial use. You need to be a registered user of the site to access the IFRS for SMEs Accounting Standard; the registration is free of charge. If you're an IFRS Digital subscriber you will be able to use the annotation and taxonomy layers within the HTML to provide greater context, as well as view the bases for conclusions and illustrative examples.
