The Need for IFRS for SMEs

  • Introduction to IFRS
  • Defining Small and Medium-Sized Entities per IASB
  • No Public Accountability
  • Historical Background of Developing Standards for Small Companies
  • A Complete Set of Requirements
  • Simplifying the Full IFRS:
    • Omitted Topics Deemed not Relevant to SMEs
    • Disallowing Accounting Policy Options
    • Simplifying Recognition and Measurement Principles
  • Implications of the IFRS for SMEs
  • US GAAP for SMEs – Recent Developments

Financial Statements Presentation

  • Purpose of Financial Statements
  • Accrual Basis of Accounting
  • Complete Set of Financial Statements

The Statement of Financial Position

  • Classification and Offsetting Issues
  • Current Assets
  • Noncurrent Assets
  • Current Liabilities
  • Noncurrent Liabilities
  • Owners’ Equity Accounts
  • Allowed Formats
  • Required Disclosures

The Statement of Comprehensive Income

  • Components of Income
  • Definition of Comprehensive Income
  • Components of Other Comprehensive Income (OCI)
  • Allowed Formats
  • Required Disclosures

The Statement of Changes in Owners’ Equity

  • Contributions from and Distributions to Owners
  • Presentation Issues
  • Share Capital
  • Retained Earnings and Reserves

The Statement of Cash Flows

  • Benefits and Uses of Statement of Cash Flows
  • Cash and Cash Equivalents
  • Reporting Cash Flows from Operating Activities
    • Direct versus Indirect Method
  • Reporting Cash Flows from Investing Activities
  • Reporting Cash Flows from Financing Activities
  • Reporting Noncash Transactions
  • Required Disclosures

Accounting for Assets

  • Accounts Receivable
  • Inventory and Cost of Goods Sold
  • Fixed Assets
  • Intangible Assets
  • Investments and Financial Instruments

Accounting for Liabilities and Equity

  • Accounts Payable and Accruals
  • Loans and Bonds
  • Capital and Dividends Transactions