The IFRS for SMEs is currently an Exposure Draft. A final standard is expected in the second half of 2008.

SOUTH AFRICA

The South African Institute of Chartered Accountants has issued its Exposure Draft No. 225, proposing to early-adopt the ED of the IFRS for SMEs as an interim standard in South Africa for limited interest companies even before the final standard is adopted by the IASB. The early-adopted version would be replaced by the final standard when it is issued. Currently, limited interest companies must choose either full IFRSs or full South African GAAP, which is very close to full IFRSs; those choices would remain. Click to Download ED 225 (PDF 98k). Comment deadline is 18 June 2007.

AUSTRALIA

The Australian Accounting Standards Board (AASB) has approved for publication an Invitation to Comment (ITC) on A Proposed Revised Differential Reporting Regime for Australia and the IASB Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities. Comment deadline is 1 September 2007. In essence, the ITC is really two major but inter-related proposals:

• A proposal to implement a revised 'differential reporting' framework in Australia, eliminating the 'reporting entity' concept, and
• The IASB's own proposed IFRS for SMEs.

Under the proposed differential reporting framework, if a business entity's revenue exceeds A$500 million or it assets exceed A$250 million and it is required to, or elects to, publish financial statements, it must use the Australian equivalents of full IFRSs (A-IFRSs). If its revenue and assets are below those size thresholds and it is required to, or elects to, publish financial statements, it would have an option of using full A-IFRSs or the Australian Equivalent of the IFRS for SMEs. Unlisted companies that are required to publish financial statements could no longer produce simplified 'special purpose' statements. This Accounting alert (PDF 52k) provides more information. The invitation to comment will be available shortly on the AASB's Website.