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25 Jun 2009
Regulators should therefore beware of any extra burden placed upon them. One body grappling with the issue is the International Accounting Standards Board, which is about to launch a set of international standards for SMEs.
This is no bad idea. That international companies should have comparable accounts to make capital cheaper is a given, but many of the same arguments apply to SMEs. It would make it easier for banks to move into overseas markets to serve smaller businesses given that their accounting will be easier to understand.
It’s only right and proper that SMEs should have a voice in discussions on what is left in or out of the standards. Without that voice, it is difficult to see how the project can have the mandate it needs. There are around 19 million SMEs across Europe , and that means their concerns should be given full consideration.
They are the motor of the European economy. For standard setters that means having people on board with on the ground experience to represent SME interests.
The IASB has good intentions but political representation would enhance and potentially make the whole project more acceptable. This is important because, despite fears, IFRS for SMEs is likely to remain voluntary, which means take up of the standards could rely upon a proper reflection of SME concerns. But there remains the possibility that funders themselves could demand accounts in IFRS as a condition of any loan or investment. That would be validation for IFRS but tremendously difficult for SMEs if the standards do not go some way to meet their needs. One thing SMEs don’t need now is another obstacle to funding.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
IFRS offers the opportunity to utilise the asset register to maximise business benefits.
It?s true that the new IFRS reporting complexity combined with an extraordinary increase in asset numbers does present a series of challenges to SMEs. But the new standards will, in time, offer tangible business benefits and increased cost efficiencies which will make any disruption caused during this transitionary period, as organisations completely readdress their asset register requirements, seem like a very necessary catalyst leading ultimately to a far more productive time.
A centralised, automated asset register is key if organisations are to reap the maximum benefits. This vital tool will not only streamline year end audits and reduce the reliance on specific, skilled personnel but will also provide the detailed insight into corporate assets required to enhance capital expenditure decision making.
Once established, this new set of standards will offer an astonishing level of visibility throughout the fixed asset register, maximising business value, streamlining processes and allowing organisations to achieve their full business potential through the prudent management of resources.
Yours faithfully,
Karen Conneely
Group Commercial Manager
Real Asset Management
www.realassetmgt.co.uk
Posted by: Karen Conneely, 25 Jun 2009 | 00:00