Ifrs for Sme
SYNTHESIS
IFRS FOR SMEs
(International Financial Reporting Standard for Small and Medium-sized Entities)
INTRODUCTION 1.1 What is the objective of PFRS for SMEs?
The objective of PFRS for SME is to develop a set of high quality, understandable and enforceable standards for SMEs. Which includes proper accounting practices for the preparation and presentation of financial statements that creates a common understanding between preparers and users of financial statements.
PFRS for SME are intended for small and medium sized entities that help the owners-managers in making management decisions with the exception in the determination of taxable income and determination of distributable income. 1.2 What are the standards issued by the International Accounting Standard Board (IASB) and its counterpart in the Philippines?
The standard issued by the International Accounting Standard Board (IASB) is stated in its approved statements- International Financial Reporting Standards (IFRS) and its counterpart in the Philippines is Philippine Financial Reporting Standards (PFRS). 1.3 What are the benefits of using PFRS for SMEs? The benefit of using PFRS for SME is for the financial statements’ users to have a common set of accounting standards and for the SME financial statements to be comparable from one country to another. OVERVIEW OF THE PFRS FOR SMEs 1. When was PFRS for SME issued globally? PFRS for SME was issued globally in July 2009. 2. When was PFRS for SME adopted in the Philippines?
PFRS for SME was adopted in the Philippines on October 13, 2009. 3. What is the definition of SME adopted by the Philippine SEC?
Small and medium-sized entities are entities that do not have public accountability, and publish general purpose financial statements for external users. 4. What entity is eligible to use the PFRS for SME?
Small and medium sized entities are eligible to use PFRS for SME. 5. What is public accountancy?
IFRS FOR SMEs
(International Financial Reporting Standard for Small and Medium-sized Entities)
INTRODUCTION 1.1 What is the objective of PFRS for SMEs?
The objective of PFRS for SME is to develop a set of high quality, understandable and enforceable standards for SMEs. Which includes proper accounting practices for the preparation and presentation of financial statements that creates a common understanding between preparers and users of financial statements.
PFRS for SME are intended for small and medium sized entities that help the owners-managers in making management decisions with the exception in the determination of taxable income and determination of distributable income. 1.2 What are the standards issued by the International Accounting Standard Board (IASB) and its counterpart in the Philippines?
The standard issued by the International Accounting Standard Board (IASB) is stated in its approved statements- International Financial Reporting Standards (IFRS) and its counterpart in the Philippines is Philippine Financial Reporting Standards (PFRS). 1.3 What are the benefits of using PFRS for SMEs? The benefit of using PFRS for SME is for the financial statements’ users to have a common set of accounting standards and for the SME financial statements to be comparable from one country to another. OVERVIEW OF THE PFRS FOR SMEs 1. When was PFRS for SME issued globally? PFRS for SME was issued globally in July 2009. 2. When was PFRS for SME adopted in the Philippines?
PFRS for SME was adopted in the Philippines on October 13, 2009. 3. What is the definition of SME adopted by the Philippine SEC?
Small and medium-sized entities are entities that do not have public accountability, and publish general purpose financial statements for external users. 4. What entity is eligible to use the PFRS for SME?
Small and medium sized entities are eligible to use PFRS for SME. 5. What is public accountancy?