Frequently Asked Questions on IFRS

Appendix

The Differences Between Full IFRS and IFRS for SMEs

There are some extremely notable differences between full International Financial Reporting Standards (IFRS) and the IFRS for Small-Medium Enterprises (IFRSSME). These are set out in the following table in the following order of Issue:

• application of IFRSSME;
• statement of cash flows;
• accounting policies, changes in accounting estimates and errors;
• events after the reporting period;
• related party disclosures;
• business combinations and goodwill;
• consolidated and separate financial statements;
• investments (interests) in joint ventures;
• investments in associates;
• property, plant and equipment;
• intangible assets (other than goodwill);
• leases;
• impairment of assets;
• income taxes;
• liabilities and equity in relation to financial instruments;
• basic financial instruments, other financial instrument issues and recognition and measurement;
• share-based payment;
• employee benefits;
• specialized activities—agriculture;
• specialized activities—extractive industries;
• foreign currency translation;
• borrowing costs; and
• government grants and disclosure of government assistance.

Issue	IFRSSME treatment	IFRS treatment
Application of IFRSSME	The scope for IFRSSME is for entities that meet the definition of an SME. An SME is defined as an entity that: does not have public accountability; and publishes general purpose financial statements for external users.	An entity that is required to apply full IFRS is required to apply IAS 1 when preparing ...