SME standards to be rebranded by IASB

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
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.

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