In under three years nearly 70 jurisdictions
have adopted IFRS for SMEs. Paul Pacter, board member of IASB, asks
why Europe is stalling
The IFRS for SMEs (International Financial Reporting Standards
for small to medium-sized enterprises) was issued in July 2009 and
it is tailored for small companies. That is, it focuses on the needs
of lenders, creditors, and others for information about cashflows,
liquidity and solvency. It also takes into account the costs to SMEs
and their capability to prepare financial information.
Today, two and a half years later, over 70 jurisdictions all
over the world either have adopted the IFRS for SMEs or have publicly
announced a plan to adopt it. Those 70 include most countries in Latin
America and the Caribbean, the majority of countries in central and
southern Africa and many in Asia.
