Transcript Title / divider screen title

International Financial Reporting Standards
Implementing
the IFRS for SMEs
March 2013
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation.
©IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Information supply chain
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Education underpins competence across the information chain
Corporate
governance
Auditing
Capital
providers
Preparers
IFRSs
the IFRS for SMEs
Enforcement
Education underpins competence across the information chain
Objective of financial reporting
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Provide financial information about the reporting
entity that is useful to existing and potential
investors, lenders and other creditors in making
decisions about providing resources to the entity
(buy, sell, hold; provide/settle loan (OB 2))
…who cannot require reporting entities to provide
information directly to them (OB 5)
…who have a reasonable knowledge of business and
economic activities and who review and analyse the
information diligently (QC 32)
©IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Implementation challenges
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• Mindset change: investor/lender-focus
– (not tax, not government statistics, not
prudential regulation, not…)
• Skillset change: make judgements and
estimates to apply IFRSs/the IFRS for SMEs
• Capacity issues: underdeveloped accounting
profession in many jurisdictions
© 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Financial Reporting Standards
The IFRS for SMEs
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation
April 2013 Project update and the future work plan
The IFRS for SMEs
Good financial reporting made simple
• 230 pages
• Simplified IFRSs, but built on an IFRS foundation
• Completely stand-alone
• Designed specifically for SMEs
• Internationally recognised
• Final standard issued July 2009
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
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Why would an SME adopt it?
– Improved access to capital
• This is the #1 issue for SMEs
– Improved comparability
– Improved quality of reporting as compared to
existing national GAAP
• World Bank ROSC reports on 100 countries
• http://www.worldbank.org/ifa/rosc.html
– Reduced burden where full IFRSs or full national
GAAP are now required for SMEs
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
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Worldwide adoption
Today (June 2013), to the best of our
knowledge:
• Over 80 jurisdictions have either adopted the
IFRS for SMEs or stated a plan to adopt it within
the next three years, including in MENA region
• North Africa: Egypt
• Middle East: Jordan, Lebanon, Palestine,
Qatar
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
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Comprehensive review
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– Initial comprehensive review: After 2 years
implementation experience
• fix errors and omissions, lack of clarity, and other
implementation problems
• also consider need for improvements based on
recent IFRSs and amendments
– Thereafter: + every 3 years omnibus exposure
draft of updates
– Expect Exposure Draft Q3 2013
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
International Financial Reporting Standards
Implementation support
IFRS for SMEs
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation
April 2013 Project update and the future work plan
Summary
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• IFRS for SMEs translated into 26+ languages
• including Arabic and French languages
• 35 modules of comprehensive training material
• 30+ regional ‘train the trainer’ workshops (3+ days)
• ppt. files free to download
• SME Implementation Group (SMEIG)
• issues non-mandatory guidance (Q&As)
• guidance for micros to apply the IFRS for SMEs
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Free IFRS for SMEs training material
• IFRS Foundation develops training material
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– 35 training modules:
– explain all requirements (notes and examples)
– discuss important judgements and estimates
– multiple choice questions, tutorials and cases
– PowerPoint presentations to support 3–5 days
of intensive training
• Work with development agencies and others
– information to those contemplating adoption
– home-language material (translations)
– regional ‘train the trainers’ workshops
Free IFRS for SMEs training material:
translations
• Comprehensive training modules
(see http://go.ifrs.org/smetraining)
– Arabic translation (ASCA funded)
– Russian, Spanish and Turkish translations
• PowerPoint presentations
(see http://go.ifrs.org/trainingppts):
– Arabic translation (ASCA funded)
– French translation (World Bank funded)
– Portuguese, Russian, Spanish and Turkish
© 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.ifrs.org
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IFRS Foundation 3-day IFRS for SMEs
‘train the trainer’ workshops
Africa and Middle East
Organiser/funding
Language
East Africa (05/2010)
ECSAFA/World Bank
English
North Africa (06/2010)
World Bank
English
West Africa (05/2011)
ABWA/World Bank
English
Middle East (09/2011)
ASCA and Dubai SME
Arabic +
English
East Africa (11/2011)
ECSAFA/World Bank
English
West Africa (04/2012)
World Bank
French
Middle East (11/2012)
Abu Dhabi Department of Arabic +
Economic Development
English
Southern Africa (05/2013) PAFA/World Bank
© 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.ifrs.org
English
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Multiplier effect: ‘train the trainers’
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• 3-day IFRS for SMEs ‘train the trainer’ workshops
– Kuala Lumpur and Hyderabad in January 2010
– 85 trainers from 15 countries
– organised by CAPA
– funded by Asian Development Bank
– IFRS Foundation material + facilitators
• Multiplier effect: next 6 months >50 workshops train
+4,500 people (source: CAPA 2010 annual report)
Now 31+ workshops; participants from 110+ countries
Guidance for micro-sized SMEs to
apply the IFRS for SMEs
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• tiny companies
• not a new standard
• extract relevant principles from IFRS for SMEs
• Guidance booklet will contain cross-references
to IFRS for SMEs for matters omitted in micro
booklet
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Free IFRS for SME downloads from
IASB Website
IFRS for SMEs (full standard, translations):
http://go.ifrs.org/IFRSforSMEs
Training materials (35 modules):
http://go.ifrs.org/smetraining
PowerPoint training modules (20 PPTs):
http://go.ifrs.org/trainingppts
Board and staff presentations:
http://go.ifrs.org/presentations
Update newsletter:
http://go.ifrs.org/smeupdate
Implementation Group Q&As:
http://go.ifrs.org/smeig
Copyright © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH UK | www.ifrs.org
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Thank you
© 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
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