Analysis of the IFRS profiles for IFRS for SMEs
To assess progress toward the goal of global accounting standards, the IFRS Foundation is developing profiles of application of IFRS in individual jurisdictions. View the jurisdiction profiles.
The following observations relate to the information in the 66 profiles currently posted concerning adoption of the IFRS for SMEs.
30 of the 81 jurisdictions have adopted the IFRS for SMEs. It is also currently under consideration in a further 9 jurisdictions.
The 30 jurisdictions that have adopted the IFRS for SMEs are Argentina, Bahamas, Bhutan (adoption planned for 2014), Botswana, Brazil, Chile, Colombia, Ecuador, Fiji, Georgia, Hong Kong, Ireland, Israel, Jamaica, Lesotho, Macedonia, Mauritius, Myanmar, Saudi Arabia (adoption planned), Singapore, South Africa, Sri Lanka, Switzerland, Tanzania, Turkey, Uganda, United Kingdom, Venezuela, Zambia, and Zimbabwe.
For the 30 jurisdictions that have adopted the IFRS for SMEs:
- 5 jurisdictions require the IFRS for SMEs for all SMEs that are not required to use full IFRSs.
- 13 jurisdictions give an SME a choice to use full IFRS instead of the IFRS for SMEs.
- 11 jurisdictions give an SME a choice to use either full IFRS or local GAAP instead of the IFRS for SMEs.
- 1 jurisdiction requires an SME to use local GAAP if it does not choose the IFRS for SMEs.
In adopting the IFRS for SMEs, 24 of the 30 jurisdictions made no modifications at all to its requirements. 6 jurisdictions made modifications as follows:
- 2 jurisdictions (Argentina and Brazil) require use of the equity method to account for investments in subsidiaries in separate financial statements. The IASB currently has a project on its agenda to consider a similar amendment to full IFRS (and this will be considered for the IFRS for SMEs at a future review of the Standard).
- 1 jurisdiction (Hong Kong) modified Section 29 Income Tax to conform to the requirements of IAS 12 Income Taxes. The IASB is considering whether to amend the IFRS for SMEs in this regard as part of the comprehensive review of the IFRS for SMEs currently underway.
- 1 jurisdiction (Saudi Arabia) has indicated that modifications are under consideration that would be adopted before the planned effective date of the IFRS for SMEs in 2014, but it has not yet decided on those modifications.
- 2 jurisdictions (Ireland and United Kingdom) made some significant modifications in adopting the IFRS for SMEs, including adding in options allowed under full IFRS that are not allowed in the IFRS for SMEs. Details can be found in the Ireland and United Kingdom profiles.