1. What are small and medium-sized entities (SMEs)? Was there a need to have International Financial
Reporting Standard (IFRS) designed for use by small and medium-sized entities (SMEs)? (Hint: use
Information Theories, Regulatory Theories, System Oriented theories and/or Political Economics Theories where
applicable)
2. What are the main differences between the full International Financial Reporting Standards (IFRS) and
the International Financial Reporting Standards (IFRS) for Small and medium-size entities (SMEs)?
3. What effect does IFRS designed for use by SMEs have on your chosen stakeholder’s financial
statements? What does it mean for users of your chosen stakeholder’s financial statements? And how
would it benefit and/or disadvantage the stakeholder? (Hint: use Information Theories, Positive Accounting
Theory, Regulatory Theories, System Oriented theories and/or Political Economics Theories where applicable)
4. Evaluate whether overall, IFRS designed for use by SMEs would result in reporting that would be more
useful to users? (Hint: use Information Theories where applicable)
5. Briefly discuss the approach that Australia Accounting Setting Board (AASB) has taken in relation to
IFRS designed for use by SMEs.
6. What is the differential reporting framework under AASB, has it any similarities to IFRS designed for
use by SMEs?
7. Summarise your discussion for your Chief Executive Officer (CEO) who is from a non-accounting
background.
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200267 Advanced Accounting INDIVIDUAL ASSIGNMENT (15%) Autumn Semester 2017 Due: Week 10, Friday 28 April 2017 This assignment is based on the International Financial Reporting Standards (IFRS) for Small and medium-size entities (SMEs). The IFRS for SMEs is a self-contained Standard (less than 250 pages), designed to meet the needs and capabilities of small and medium-sized entities (SMEs), which are estimated to account for over 95 per cent of all companies around the world. Compared with full IFRS (and many national GAAPs), the IFRS for SMEs is less complex in a number of ways according to International Accounting Standards Setting Board (IASB). The Standard is available for any jurisdiction to adopt, whether or not it has adopted full IFRS. Each jurisdiction must determine which entities should use the Standard. The IASB's only restriction is that entities that have public accountability should not use it. When the IFRS for SMEs was issued, the IASB stated that it planned to undertake an initial comprehensive review of the IFRS for SMEs after two years of use by SMEs to consider whether there was a need for any amendments. Specifically, the IASB said it would consider whether to amend the IFRS for SMEs to address any implementation issues identified and also whether to consider any changes made to IFRS (sometimes referred to as ‘full IFRS’ when compared to the IFRS for SMEs) since the IFRS for SMEs was published. The IASB decided to commence its initial comprehensive review in 2012, with support from the SME Implementation Group (SMEIG), based on its view that sufficient jurisdictions had adopted the IFRS for SMEs by 2010 to provide broad insight into the implementation experience. After consulting widely with constituents, the IASB concluded that the IFRS for SMEs is working well in practice. However, some areas were identified where targeted improvements could be made. Consequently, after considering the feedback it...