RegulationAccounting StandardsIFRS for SMEs incompatible with EU directives: EFRAG

IFRS for SMEs incompatible with EU directives: EFRAG

Accounting body releases outcome of investigation

The EU’s chief accounting body has found new international accounting rules
aimed at more than 90% of businesses are incompatible with EU directives.

The
European Financial Reporting Advisory Group this week released the outcome of
its investigation
into the compatability of international accounting rules
for small and medium sized businesses (SME).

The International Accounting Standards Board released a set of rules for SMEs
in July 2009. Within six months 35 nations indicated they would adopt the rules,
however progress stalled in Europe which investigated compatibility with EU
directives.

EFRAG’s eight month inquiry has found the rules are incompatible in a number
of areas including accounting for good will, extraordinary items and financial
instruments.

International rules for SMEs were put together in part to improve the flow of
capital to emerging markets and has been welcomed by developing nations.

Further reading:

SME
standards set for adoption across the globe

ASB
sounds death knell for UK GAAP

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