Robin Jarvis - Shaping Regulation and Standards to Suit SMEs and SMPs

869
-1

Published on

Presentation by Robin Jarvis, Member, International Accounting Standards Board (IASB) SME Implementation Group, IFAC SMP Forum, March 2012

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
869
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Robin Jarvis - Shaping Regulation and Standards to Suit SMEs and SMPs

  1. 1. Shaping Regulation andStandards to Suit SMEs andSMPs Professor Robin Jarvis IASB Implementation Group IFAC SMP Forum Singapore 19 March 2012 Page 1 | Confidential and Proprietary Information
  2. 2. Developing Financial Reporting Standards forSMEsHow Financial Reporting Standards have been developed:• In the Past – using IFRS for SMEs as the example• Future issues: what have we learnt for the future development of financial reporting standards• Conclusion Page 2 | Confidential and Proprietary Information
  3. 3. IFRS for SMEs Published in July 2009: RationaleRationale for the introduction of IFRS for SMEs• Many countries were using for SME financial reporting the full IFRS• Cross border trading activities230 pages (full IFRSs are 3,000+)Simplified IFRSs but built on an IFRS foundation. Page 3 | Confidential and Proprietary Information
  4. 4. IFRS for SMEs : Simplification, Adopters andImplementation and ReviewSimplifications based on:• User needs for information about short-term cash flows, liquidity, and solvency (rather than longer term forecasts of earnings and share prices)• Costs and SME capabilities (50 employees)• Completely stand-aloneOver 70 countries have adopted or announced plans to do soImplementation Group and the 2012 Review... Page 4 | Confidential and Proprietary Information
  5. 5. Financial Reporting for SMEs: the issues (1)• Do we really know the users and their needs?• Can a top down approach capture the needs of SMEs and their Users?• How is other information is used with financial reports in decision making – e.g. the trade credit decision?• Costs and benefits: Impact assessments Page 5 | Confidential and Proprietary Information
  6. 6. Financial Reporting for SMEs: the issues (2)• Regulatory Impact assessment• Politics: ‘The IASB is a private members club’• Is there a case for differentiating financial reports with the ‘definition’ of SMEs e.g. micro, small and medium? Page 6 | Confidential and Proprietary Information
  7. 7. Conclusion – the future• Regulatory burden / simplification: the demise of financial reporting for micros and small companies?• Will there be another chance to develop global SME financial reporting standards?• What can we do to improve the current standards?• Developing a micro entity global financial reporting standard? Page 7 | Confidential and Proprietary Information
  8. 8. Thank-youwww.ifac.org/smp Page 8 | Confidential and Proprietary Information

×