What is meant by small- and medium-sized entities (“SMEs”)?
IFRS for SMEs is intended to be used by SMEs, which are entities that publish general purpose financial statements for external users and do not have public accountability. An entity has public accountability under the IASB’s definition if it files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market; or it holds assets in a fiduciary capacity for a broad group of outsiders. Examples of entities that hold assets in a fiduciary capacity include banks, insurance companies, brokers and dealers in securities, pension funds and mutual funds. It is not the IASB’s intention to exclude entities that hold assets in a fiduciary capacity for reasons incidental to their primary business (for example, travel agents, schools and utilities) from utilizing IFRS for SMEs. Practically speaking, IFRS for SMEs is viewed as an accounting framework for entities that are n
