Small and medium entities Flashcards
Who was IFRS for SMEs Standard issued for?
Entities that have no public accountability. This standard reduces the burden of producing information that is not likely to be of interest to stakeholders of a small or medium company.
What 4 pieces of content are excluded for SMEs?
4 omissions as below;
-earnings per share
-assets held for sale
-operating segments
-interim reporting
Why are some exclusions made for SMEs?
The cost of preparing and reporting that information would exceed the benefits that users would derive from that information
What 3 accounting choices are disallowed for SMEs?
-NCI at acquisition date cannot be measured at fair value
-revaluation model cannot be used intangible assets
-cost model for investment property is only used if the fair value cannot be determined reliably
What 6 simplifications are made for SMEs?
-borrowing costs are always expenses to p&l
-depreciation and amortisation methods do not need to be reviewed annually
-expenditure on research and development is always expenses to p&l
-goodwill is amortised over its useful life. If UEL cannot be reliably established, 10 years or less used
-cumulative exchange differences are not recycled to p&l on disposal of an overseas subsidiary
-simplified techniques are permitted when measuring a defined benefit obligation
