IASB publishes guidance for micro entities

  • IFRS for SMEs (mid blue) Image

27 Jun 2013

The International Accounting Standards Board (IASB) today issued guidance to help micro-sized entities apply the IFRS for Small and Medium-sized Entities (IFRS for SMEs). The Guide accompanies, but is not part of, the IFRS for SMEs.

As many requirements of the IFRS for SMEs are not relevant to micro-sized entities, the IASB has developed, with input from the SME Implementation Group (SMEIG), a guide that extracts from the IFRS for SMEs only those requirements that are likely to be necessary for a typical micro-sized entity, without modifying any of the principles for recognising and measuring assets, liabilities, income and expenses. (Some wording changes were necessary to improve the flow of the drafting or for other editorial reasons.) It thus helps these entities to identify more easily the requirements of the IFRS for SMEs that are relevant to them.

The Guide is not a stand-alone standard for micro entities. It contains cross-references to the IFRS for SMEs for matters not covered by the guidance and micro entities that encounter these matters are required by the Guide to refer to the applicable requirements in the IFRS for SMEs. Therefore, compliance with this Guide will result in compliance with the IFRS for SMEs. (For easy identification, transactions, other events or conditions covered in the IFRS for SMEs but not in the Guide are identified in a seperate box at the beginning of the relevant sections in the guidance.)

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