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Description :
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The International Accounting Standards Board is working on a project to develop an International Financial reporting Standard (IFRS) expressly designed to meet the financial reporting needs of small and medium-sized entities (SMEs) that
- (a) do not have public accountability and
- (b) publish general purpose financial statements for external users. Examples of such external users include owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies.
An entity has public accountability if:
- it has filed, or it is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market;
- it holds assets in a fiduciary capacity for a broad group of outsiders, such as a bank, insurance company, securities broker/dealer, pension fund, mutual fund or investment banking entity.
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