December 27 of 2024
¿What are IFRS for SMEs?
The International Financial Reporting Standards (IFRS) for SMEs are a set of accounting principles specifically designed for Small and Medium-sized Enterprises (SMEs). These standards were issued by the International Accounting Standards Board (IASB) with the purpose of providing a simplified and accessible framework for preparing reliable and transparent financial statements.
¿Why the SMEs are important?
- Simplicity and Adaptability: They are designed to be easier to apply compared to full IFRS, as they eliminate complex requirements that are only relevant to large corporations.
- Financial Transparency: They improve the presentation of financial information, allowing for greater comparability between companies both domestically and internationally.
- Access to Financing: They facilitate obtaining loans and investments, as financial statements comply with internationally recognized standards.
- Legal Compliance: In many countries, the use of IFRS for SMEs is either mandatory or recommended, ensuring proper adherence to accounting regulations.
¿Which companies can apply these standards??
SMEs that:
- Are not listed on the stock exchange.
- Do not have public accountability obligations.
- Are required to present financial information to third parties (banks, investors, suppliers).
Key benefits of implementing IFRS for SMEs
- Lower complexity compared to full IFRS.
- Reduced costs in preparing and auditing financial statements.
- Facilitates international growth by applying globally recognized standards.
- Improved decision-making with more accurate and organized information.