IASB Releases Exposure Draft on IFRS for Small, Medium Sized Entities

February 15, 2007

FEI Summary

On Feb. 15, 2007, the International Accounting Standards Board (IASB) released to its subscribers its Exposure Draft (ED) of its International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) for public comment.  The aim of the ED is to provide a simplified, self-contained set of accounting principles that are appropriate for smaller, non-listed companies and are based on full IFRS, which were developed primarily for listed companies. By removing choices for accounting treatment, eliminating topics that are not generally relevant to SMEs and simplifying methods for recognition and measurement, the resulting draft standard reduces the volume of accounting guidance applicable to SMEs by more than 85 per cent when compared with the full set of IFRSs. Further information is available in IASB’s press release here.

The ED will be posted on IASB’s website February 26, and the comment deadline is October 1.