Transcript No Slide Title
25/04/2020 18:23
Impact of convergence on unlisted companies Richard Martin
© ACCA presentation Slide 1
ACCA
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Leading global accountancy qualification 300,000 members and students in 160 countries UK origins and base Examining in IAS since 1997 Certificate and diploma in IFRS
© ACCA presentation 25/04/2020 18:23 Slide 2
Unlisted companies & IFRS
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What is the problem?
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Issues that arise
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Ways forward
© ACCA presentation 25/04/2020 18:23 Slide 3
Why is there a problem?
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Increasing take up of IFRS One language for a global capital market EU and 2005 Others - Australia, Russia Direct application by listed companies New constitution of IASB focussed on capital markets
© ACCA presentation Slide 4
Why is there a problem?
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Member state options to extend allow or require Majority of companies are SMEs Are IFRS relevant to SMEs?
How much harmonisation for SMEs?
Two systems in one country? Communication, training etc. for more
© ACCA presentation 25/04/2020 18:23 Slide 5
Key issues raised
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Scope: entities covered - all unlisted or SMEs?
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Conceptual issues
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stewardship or decision making?
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Users and needs relevance understandability costs and benefits
© ACCA presentation Slide 6
Key issues raised
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Approach
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specific exemptions
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stand alone document
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standard or guidance Disclosure reductions
© ACCA presentation 25/04/2020 18:23 Slide 7
Key issues raised
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Recognition and measurement differences - e.g. fair values, historical cost, discounting, deferred tax
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less common subjects
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group accounting
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sectors
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complexities - IAS39 and IAS19
© ACCA presentation 25/04/2020 18:23 Slide 8
Ways forward
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UNCTAD IASB research project Choices Keep 2 systems Extend IFRS to all companies
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(including SME standard?) National standards based on Directives & IFRS (using UNCTAD system or others?)
© ACCA presentation 25/04/2020 18:23 Slide 9