# International Accounting Standards Board (IASB) today (15 February) issues proposed new IFRS for non-publicly accountable entities or small and medium enterprises (SMEs)
# a single set of global financial reporting standards for SMEs
# national jurisdictions to decide which businesses will use the standards
Following a long debate over whether the same financial reporting rules should be applied to both listed and unlisted entities, the IASB have developed a proposed IFRS for businesses that publish general purpose financial statements but that are not publicly accountable.
A positive move?
April Mackenzie, Executive Director Global Standards, Grant Thornton International comments:
"This is a very positive move. Good financial information is extremely important and beneficial. But there is a huge demand for a level of reporting less onerous than full IFRS for non-publicly accountable entities. The users of financial information in the non-publicly accountable sector don't have the same requirements as users of listed company financial statements. An internationally accepted approach to reporting by non-publicly accountable entities will also bring credibility to their financial statements because banks and other financial institutions will take comfort from the fact that they are following a recognised set of standards. The financial statements of many of our member firms' large private clients are used in more than one country so having the same set of standards globally can only be a benefit to them and to the increasingly global economy.
See full Press Release.
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