What is IFRS for SMEs?
The new standard is a vastly slimmed down version of IFRS, consisting of just 230 pages, or less than 10% of the full IFRS. The new standard contains 35 sections, each of which addresses a different element of financial reporting (inventory, fixed assets, investments, etc.), reporting forms (statement of financial position, statement of comprehensive income, statement of cash flows, etc.), and types of transactions or operations (borrowing costs, leasing, related party transactions, etc.). The new IFRS standard does not include sections on earnings per share, segment reporting, special accounting for assets held for sale, etc., since as a rule these are not applicable to SMEs. The new standard holds to the same ideals as the full IFRS, including prudence, substance over form, reliability, timeliness, materiality, comparability, reliability, and completeness. For applying the standard, IASB also published a guide with illustrative financial accounting and a checklist for reporting infor
