The international accounting standard for SMEs is set to be rebranded as a standard for private companies.

The standard, which has caused confusion for many who have queried the definitions of small companies, could be revamped, said International Accounting Standards Board chairman, Sir David Tweedie.

Speaking to Financial Director magazine, Sir David said: ‘We’re thinking of changing the name to “private companies”.’

He indicated that the criticisms of the standard from Europe were not unduly worrying him. Emerging markets are keen on the standard ‘and we have a duty to them as well as the big [countries]’.

The original title came under fire from ACCA which said it was inconsistent in relation to the entities that the IASB had in mind in its drafting, which was for an enterprise with 50 employees.

‘Many would not regard the average SME as being as large as that and the title has raised expectations that the needs of an average SME were going to be addressed,’ an ACCA spokesman said.