If you are fairly new to running an SME (or even if you aren’t) you may not yet be aware of the accounting rules that came into into effect on 1st January 2013 which have the somewhat long-winded name of “The International Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs)”. The reason for their introduction was to try and help make life easier for investors in businesses and lenders to businesses by launching a single standard to help replace the 50 odd sets of accounting standards being used previously in the EU.

The IFRS for SME Standard is a 230 page self-contained document, it is aimed to meet the needs of small and medium sized businesses as these are estimated to account for over 95% of all businesses on a global level. It has been reduced compared to a full IFRS to make it less unwieldy for the smaller business.

The original vision of making a global accounting standard has been widely supported by many international organisations including people like the G20, World bank and IFAC. There are currently 66 jurisdiction profiles which include all of the G20 jurisdictions and 46 others.A full list of the jurisdictions can be seen (and downloaded) from the IFRS Jurisdiction page.

A copy of the complete standards along with checklists etc can also be downloaded from the IFRS website.

Obviously the implementation of the standard can mean extra work involved for the businesses, especially if you don’t consult your book keeper or accountant when you are setting up your financial records.

Since its implementation, the standard has had regular updates, which any accountant you use should be aware of, it is important that your accountant keeps up to date with these as they could impact your business.

If you are at all worried about these accounting standards we suggest that you talk to your accountant about any work that you need. You may also want to look at training for your senior accounts staff so that they know what to expect.