The Need for IFRS for SMEs

• Introduction to IFRS
• Defining Small and Medium-Sized Entities per IASB
• No Public Accountability
• Historical Background of Developing Standards for Small Companies
• A Complete Set of Requirements
• Simplifying the Full IFRS:
  • Omitted Topics Deemed Not Relevant to SMEs
  • Disallowing Accounting Policy Options
  • Simplifying Recognition and Measurement Principles
• Implications of the IFRS for SMEs
• US GAAP for SMEs – Recent Developments

Financial Statement Preparation

• Purpose of Financial Statements
• Accrual Basis of Accounting
• Complete Set of Financial Statements

The Statement of Financial Position

• Classification and Offsetting Issues
• Current Assets
• Noncurrent Assets
• Current Liabilities
• Noncurrent Liabilities
• Owners’ Equity Accounts
• Allowed Formats
• Required Disclosures

The Statement of Comprehensive Income

• Components of Income
• Definition of Comprehensive Income
• Components of Other Comprehensive Income (OCI)
• Allowed Formats
• Required Disclosures

The Statement of Changes in Owners’ Equity

• Contributions from and Distributions to Owners
• Presentation Issues
• Share Capital
• Retained Earnings and Reserves

The Statement of Cash Flows

• Benefits and Uses of Statement of Cash Flows
• Cash and Cash Equivalents
• Reporting Cash Flows from Operating Activities
  • Direct versus Indirect Method
• Reporting Cash Flows from Investing Activities
• Reporting Cash Flows from Financing Activities
• Reporting Noncash Transactions
• Required Disclosures

Accounting for Assets

• Accounts Receivable
• Inventory and Cost of Goods Sold
• Fixed Assets
• Intangible Assets
• Investments and Financial Instruments

Accounting for Liabilities and Equity

• Accounts Payable and Accruals
• Loans and Bonds
• Capital and Dividends Transactions