Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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After five years of development including extensive world-wide consultation and field testing, the IASB published IFRS for SMEs in July 2009. It consists of a standard running to 230 pages (less than 10% of full IFRS) and is accompanied by Illustrative Financial Statements, a Disclosure Checklist and a Basis for Conclusions.

Please note: these documents are available for downloading free of charge at IFRSforSMEs

In September 2009 a Spanish translation of the IFRS for SMEs was released. IASeminars offers a two day version of this course in Spanish see Course 5040.

Full IFRSs are intended primarily for publicly accountable entities. These represent a tiny minority of businesses that prepare financial statements round the world. There has long been strong demand for a rigorous and common set of accounting standards for smaller and medium-sized entities.

IFRS for SMEs is self-contained; it represents a complete set of GAAP in its own right. It is based on full IFRS but is tailored to the needs and resources of businesses that are not publicly accountable; i.e. those do not have listings for their shares or other securities nor mainly hold assets on behalf of others.

IFRS for SMEs adjusts to full IFRS in different ways:

• Omit topics not generally relevant to these entities

• Remove some treatments permitted by full IFRSs

• Simplify recognition and measurement requirements

Each jurisdiction must decide for itself whether to require or permit the use of IFRS for SMEs. It must also determine the entities to which the standard applies. South Africa announced its adoption for 2009 and the United Kingdom is consulting about making it compulsory with effect from 2012. Other countries have indicated that they intend to require or permit its use.

In 2008 the AICPA recognized the IASB as a designated standard setting body in the USA, along with the FASB. If a US domestic corporation that is not registered with the SEC chooses to prepare general purpose financial statements and have them audited, the AICPA would permit the use of IFRS for SMEs.

An AICPA press release in July 2009 stated: “The AICPA welcomes the issuance and use of International Financial Reporting Standards for private entities as issued by the IASB in London. IFRS for SMEs is a modification and simplification of full IFRS aimed at meeting the needs of private company financial reporting users and easing the financial reporting burden on private companies through a cost-benefit approach.”

In December 2009 the AICPA and the Financial Accounting Foundation, FASB’s parent organization, announced the launch of the Panel on Private Company Reporting. The panel, which is also sponsored by the National Association of State Boards of Accounting (NASBA), is expected to develop recommendations by the end of 2010.

By using examples and through discussions, delegates will receive in-depth, practical knowledge of the new standard. Its scope, principles and other requirements, as well as the impact of first time adoption, will be examined. Our instructors not only have extensive knowledge of full IFRSs but also the issues relating to smaller or non-publicly accountable companies. They are therefore ideally placed to explain how to apply the IFRS for SMEs to individual businesses. Participants will leave the course with a complete understanding of this standard.

The program answers questions such as:

• In terms of the scope of the standard, which entities are allowed to apply IFRS for SMEs?

• What are the transitional provisions and procedures required by an entity applying IFRS for the first time?

• What are the key requirements regarding presentation, recognition, measurement and disclosure in terms of IFRS for SMEs?

• What are the major differences between full IFRS and IFRS for SMEs?

• How could the simplifications contained in IFRS for SMEs affect financial reporting by SMEs?

Prerequisites

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Basic understanding of accounting principles based on any national standards. No advance preparation is required for this course.

Course Level

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Overview

Topics

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• Scope of IFRS for Small and Medium-Sized Entities (SMEs)
• Concepts and Pervasive Principles
• Differences between Full IFRS and IFRS for SMEs: Fall-Backs to Full IFRS
• Specific Topics:
• Presentation of Financial Statements, including Illustrative Financial Statements and Disclosure Checklist
• Statement of Financial Position, Statement of Comprehensive Income and Income Statement
• Statement of Changes in Equity and Statement of Income and Retained Earnings
• Statement of Cash Flows
• Notes to the Financial Statements
• Consolidated and Separate Financial Statements
• Accounting Policies, Estimates and Errors
• Financial Instruments
• Basic and Other
• Fall back to IAS 39 – Recognition and Measurement
• Inventories
• Investments in Associates and Joint Ventures
• Investment Property
• Property, Plant and Equipment
• Intangible Assets
• Business Combinations and Goodwill
• Leases
• Provisions and Contingencies
• Liabilities and Equity
• Revenue
• Government Grants
• Borrowing Costs
• Share-Based Payment
• Impairment of Assets
• Employee Benefits
• Income Tax, including Deferred Tax
• Foreign currency Translation
• Hyperinflation
• Events after the End of the Reporting Period
• Related Party Disclosures
• Specialized Activities:
• Agriculture
• Extractive activities
• Service concessions
• Transition to the IFRS for SMEs

Course Benefits

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• Learn about the IFRS for SMEs and understand the simplifications that have been made by the IASB
• Apply the IFRS for SMEs to typical SME issues based on a thorough understanding of the principles
• Get practical answers to SME accounting questions
• Be up-to-date with global developments regarding the IFRS for SMEs
• Know how to transition to the IFRS for SMEs from another accounting framework
• Understand the differences between full IFRS and the IFRS for SMEs, as well as the benefits of adopting the IFRS for SMEs

Teaching Method

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• Live group instruction, cases, examples, group work, open discussions
• Identification of the critical issues affecting financial reporting by SMEs
• Succinct examples and cases that illustrate the application of the IFRS
• Presentation and discussion of model financial statement disclosures
• Interactive participation is encouraged
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Continuing Professional Education (CPE)

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24 hours

Venue

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All of our Dubai seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands.

Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available.

Coffee and lunch will be provided.