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 140 profiles currently posted concerning adoption of the IFRS for SMEs.
Seventy-three of the 140 jurisdictions whose profiles are posted require or permit the IFRS for SMEs. It is also currently under consideration in a further 14 jurisdictions.
The 73 jurisdictions that require or permit the IFRS for SMEs are:
Anguilla, Antigua and Barbuda, Argentina, Armenia, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belize, Bhutan, Bosnia and Herzegovina, Botswana, Brazil, Cambodia, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Fiji, Georgia, Ghana, Grenada, Guatemala, Guyana, Honduras, Hong Kong, Iraq, Ireland, Israel, Jamaica, Jordan, Kenya, Kosovo, Lesotho, Macedonia, Maldives, Mauritius, Montserrat, Myanmar, Nicaragua, Nigeria, Palestine, Panama, Peru, Philippines, Rwanda, Saint Lucia, Saudi Arabia, Serbia, Sierra Leone, Singapore, South Africa, Sri Lanka, St Kitts and Nevis, St Vincent and the Grenadines, Suriname, Swaziland, Switzerland, Tanzania, Trinidad & Tobago, Turkey, Uganda, United Arab Emirates, United Kingdom, Uruguay, Venezuela, Yemen, Zambia, and Zimbabwe.
For the 73 jurisdictions that require or permit the IFRS for SMEs:
- Five jurisdictions require the IFRS for SMEs for all SMEs that are not required to use full IFRS;
- Fifty jurisdictions give an SME a choice to use full IFRS instead of the IFRS for SMEs;
- Seventeen jurisdictions give an SME a choice to use either full IFRS or local GAAP instead of the IFRS for SMEs; and
- One jurisdiction requires an SME to use local GAAP if it does not choose the IFRS for SMEs.
In requiring or permitting the IFRS for SMEs, 64 of the 73 jurisdictions made no modifications at all to its requirements. Eight jurisdictions made modifications as follows:
- Two jurisdictions (Argentina and Brazil) require use of the equity method to account for investments in subsidiaries in separate financial statements. The IASB has recently made a similar amendment to full IFRS (and this will be considered for the IFRS for SMEs at a future review of the Standard;
- One jurisdiction (Hong Kong) modified Section 29 Income Tax to conform to the requirements of IAS 12 Income Taxes. The IASB has decided whether to amend the IFRS for SMEs in this regard as part of the comprehensive review of the IFRS for SMEs currently underway;
- One 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 finalised those modifications;
- Two 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;
- One jurisdiction (Bangladesh) did not adopt Section 31 Hyperinflation for SMEs because hyperinflation is not an issue domestically; and
- One jurisdiction (Bosnia and Herzegovina) does not require the statements of cash flows or changes in equity in separate financial statements prepared using the IFRS for SMEs.
- One jurisdiction (Uruguay) permits capitalisation of borrowing costs. Uruguay also permits use of the revaluation model for property, plant and equipment, an option that the IASB has decided to add to the IFRS for SMEs for all jurisdictions.
This page was last updated 9 June 2015.