Ifrs for Sme

Only available on StudyMode
  • Download(s) : 355
  • Published : June 1, 2012
Open Document
Text Preview
Technical Department 13 July 2010

General Accounting Principles for Smaller Entities (GAPSE) and IFRS for SMEs A comparative analysis
This publication summarises the recognition, measurement and disclosure requirements set out in the “Accountancy Profession (General Accounting Principles for Smaller Entities) Regulations, 2009” (hereinafter referred to as “GAPSE”) and compares these to the corresponding recognition, measurement and disclosure requirements in the IFRS for SMEs, with a view to identify any similarities and differences between the two standards. This publication is intended as general information and is not a substitute for reading and understanding the entire GAPSE or the IFRS for SMEs. While every effort has been made to ensure that this publication summarises the salient recognition, measurement and disclosure requirements in GAPSE and the corresponding requirements in the IFRS for SMEs, it cannot be used as a substitute for a user’s understanding of either standard and his or her exercise of professional judgement. This publication is not an interpretation on the IFRS for SMEs. Interpretations on IFRS remain those issued by the International Financial Reporting Interpretations Committee of the International Accounting Standards Board (IASB), or by any committee or board to which the IASB delegates the issuance of interpretations on the IFRS for SME. This summary is not intended to be used by preparers in assessing compliance with all the applicable requirements in GAPSE or the IFRS for SMEs and the Institute will not be responsible for any loss sustained by any person who relies on this publication.

-1 -

GAPSE requirements Section 1 Objective

IFRS for SMEs requirements Preface

Comments Not incompatible
Needs further analysis

Incompatible

The objective of the Accountancy Profession (General Accounting Decisions on which entities are required or permitted to use GAPSE is given legal ‘existence’ by the Accountancy ProPrinciples for Smaller Entities) Regulations, 2009(hereinafter re- the standards rest with legislative and regulatory authorities fession (Accounting and Auditing Standards) Regulations, ferred to as “GAPSE”) is to prescribe the general accounting prin- and standard-setters. A clear definition of the class of entity2009 (L.N. 19 of 2009) and subsequently published in the ciples that may be adhered to by entities falling within its scope. for which the IFRS for SMEs is intended is essential so that Accountancy Profession (General Accounting Principles for (a) the IASB can decide on the accounting and disclosure re- Smaller Entities) Regulations, 2009 (L.N. 51 of 2009). quirements that are appropriate for that class of entity and (b) To be enacted locally, IFRS for SMEs would need to be the legislative and regulatory authorities, standard-setters, andlegislated for. reporting entities and their auditors will be informed of the intended scope of applicability of the IFRS for SMEs.

-1 -

GAPSE requirements Section 2 Scope

IFRS for SMEs requirements Section 1 Small and Medium-sized Entities

Comments Not incompatible
Needs further analysis

Incompatible

Scope Intended scope The scope of GAPSE has both qualitative and quantitative An entity assesses its eligibility to apply GAPSE for each financial The IFRS for SMES is intended for use by small and medium characteristics. reporting period in which it is considering applicability of GAPSE. sized entities (SMEs). The scope of the IFRS for SMEs is purely qualitative. An entity may apply GAPSE if: Description of SMEs Were IFRS for SMEs to be adopted locally, a study would (a) the entity’s Board of Directors or its governing body has reneed to be carried out to quantify the number of potential An SME is an entity that: solved to apply GAPSE for the relevant financial reporting peusers of IFRS for SMEs. (a) Does not have public accountability, i.e.: riod; and i. Has no debt or equity instruments traded in a public (b)...
tracking img