RegulationAccounting StandardsSME standard could ruin convergence

SME standard could ruin convergence

The International Federation of Accountants warns that the project to develop a common global standard for SMEs risks alienating countries with rapidly growing economies and large numbers of small but expanding companies

The inappropriate development of accounting standards for smaller unlisted
companies could cripple the drive towards global convergence, accountants have
warned.

The International Federation of Accountants has warned that the project to
develop a common global standard for SMEs, based on the principles of IFRS,
risks alienating countries with rapidly growing economies and large numbers of
small but expanding companies.

‘Concerns over the high costs of complying with full international financial
reporting standards have prompted many countries to look at alternatives to
international standards, or to delegate standards setting to organisations that
may not be appropriate for such a role,’ said IFAC chief executive Ian Bell.

‘Such actions are not in the public interest and therefore it is critical
that standard setters be conscious of the effects of compliance costs on small
and medium entities.’

Global convergence would be severely harmed if countries such as India or
China, that are considering IFRS adoption or are in the process, were to pull
out over burdensome compliance costs for SMEs.

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

1w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter