Reporting framework

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daljeet
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Reporting framework

Post by daljeet »

If a company reports its financial statements in accordance with IFRS and subsequently decided to move to IFRS for SME. It could be wrong selection of reporting framework and users do not find reason for using IFRS.

Is this allowed and if yes, what guidance is there available for company to apply?
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Marek Muc
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Re: Reporting framework

Post by Marek Muc »

if your local law allows it and you satisfy the definition of SME, then you can do it

https://cdn.ifrs.org/-/media/feature/su ... ule-35.pdf
daljeet
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Re: Reporting framework

Post by daljeet »

Thank you Marek.
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Marek Muc
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Re: Reporting framework

Post by Marek Muc »

in Poland, for example, IFRS for SME is not endorsed, SMEs must choose between full IFRS and Polish GAAP
JRSB
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Re: Reporting framework

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IFRS for SME not permitted in UK - because 'UK GAAP' is based on IFRS for SMEs, but with certain modifications based on historic uk rules.
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Marek Muc
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Re: Reporting framework

Post by Marek Muc »

I think that there should be one more solution for SMEs that are subsidiaries of listed entities: full IFRS but with limited disclosure requirements. This way they would be able to use the same accounting policies as the group, but without the onerous disclosure requirements
JRSB
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Re: Reporting framework

Post by JRSB »

We have exactly that, called FRS 101 (FRS 102 being UK GAAP). FRS 101 is full IFRS but reduced disclosure for subsidiaries.
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Marek Muc
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Re: Reporting framework

Post by Marek Muc »

didn't know that! this is something the EU should do as well, and even it wouldn't be a bad idea for the IASB to incorporate something like this into full IFRS
JRSB
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Re: Reporting framework

Post by JRSB »

definitely better practical things they can do ahead of a new regulated rate standard - I see that's today's news...
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Marek Muc
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Re: Reporting framework

Post by Marek Muc »

yep, 've seen this accouncement...
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Marek Muc
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Re: Reporting framework

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