More on small and medium-sized entities (SMEs)

The IASB has published A Staff Overview of the exposure draft of the proposed IFRS for Small and Medium-sized Entities. The overview is intended as a high level introduction to the proposals set out in the following documents: Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities; Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities - Basis for Conclusions; Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities - Draft Implementation Guidance - Illustrative Financial Statements and Disclosure Checklist. For complete project information on SMEs, visit the IASB website.

IFRSs In Your Pocket

In April 2007, Deloitte published the sixth edition of IFRSs In Your Pocket. The 100-page guide includes information about: IASB structure and contact details; use of IFRS around the world, including updates on Europe, Asia, USA and Canada; summaries of each IASB Standard (through IFRS 8 and the amendment to IAS 23) and Interpretation (through IFRIC 12), as well as the Framework and the Preface to IFRS; background and tentative decisions on all current IASB projects; IASC and IASB chronology; update on IFRS-US GAAP convergence; and other useful IASB-related information.

SEC Announces Next Steps Relating to IFRS

The United States Securities and Exchange Commission has announced a series of actions it intends to take relating to the acceptance of financial reporting in International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). The proposals would give foreign private issuers a choice between IFRS and U.S. GAAP. The Press Release is available online.

IOSCO 32nd Annual Conference

The world’s securities and futures regulators have concluded their meeting in Mumbai, India which took place from April 9-12, 2007 on the occasion of the 32nd Annual Conference of the International Organization of Securities Commissions (IOSCO). The Final Communiqué, available on the IOSCO website, states that the need to progress toward internationally recognized financial reporting standards has been a central issue in the global financial services markets for some time. IOSCO has consistently focused on convergence, implementation and application, through the building of an IOSCO Database that will facilitate the sharing by securities regulators of decisions relating to the enforcement of IFRS.

FEI addresses financial reporting complexity

The Financial Executives International (FEI) notes that the complexity and technical demands of accounting and disclosure standards have increased considerably in recent years. It believes complexity harms the ability of users of financial statements to understand the information provided and impairs the ability of preparers to explain their financial results in a meaningful way. Investors are not well served by the drain on shareholder wealth from the excessively complex compliance process. The capital markets are not well served when scarce financial resources are not used in value-enhancing business initiatives but to satisfy disclosure and accounting requirements that fail to meet cost-benefit tests. The FEI’s Four Point Plan recommends steps to address complexity, including a call for all stakeholders in the financial reporting process to come together to form an independent “Committee on Complexity.”