The IASB has issued a two page plus new accounting standard for small and medium sized enterprises. As Accountancy says:
The international standard-setter has today published its long-awaited International Financial Reporting Standard for SMEs after five years of consultation on the standards.
The International Accounting Standards Board aimed to produce a standard which is less complex than full IFRS and which would improve comparability for SME users of accounts, who comprise 95% of businesses.
Commenting on the standard, IASB chairman Sir David Tweedie said: ‚ÄòFor the first time, SMEs will have a common high quality and internationally respected set of accounting requirements. We believe the benefits will be felt in both developed and emerging economies.’
That is ludicrous. These things are too complex for developed economies – in developing and emerging economies they would represent madness – and add no value at all to users or tax authorities. These countries should adopt the UN’s SMEGA – Accounting and Financial Reporting Guidelines for Small and Medium-sized Enterprises. These make vastly more sense – and are short, comprehensible, sensible and appropriate.
Just about the opposite of the IASB offering.