IFAC information paper on micro-entity standards
13 Dec 2006
The International Federation of Accountants (IFAC) has published an information paper exploring the needs of users and preparers of the financial reports of micro-entities.
The paper, Micro-Entity Financial Reporting: Perspectives of Preparers and Users, was authored by two accounting educators from the United Kingdom. It defines micro-entities as those with less than ten employees. The paper includes a review of the existing research on the topic, a survey of the legal status of micro-entities in different countries, and the various definitions that exist in different jurisdictions. "The research was prompted by a concern that the International Accounting Standards Board's IFRS for SMEs may not be suited to micro-entities." The IASB expects to issue an Exposure Draft of the IFRS for SMEs in January 2007. The Basis for Conclusions of that ED will explain the IASB's view that the IFRS for SMEs is suitable for all SMEs, including micros, that prepare general purpose financial statements for external users. Click for:
- IFAC Information Paper (PDF 262k)
- Press Release (PDF 83k)