A Guide For Micro-sized Entities Applying The IFRS For SMEs

International Accounting Standards Board® (IASB®)

Illustrative Guidance

June 2013

IFRS® for SMEs

A Guide for Micro-sized Entities Applying the IFRS for SMEs (2009)

A Guide for Micro-sized Entities

Applying the IFRS for SMEs (2009)

This Guide accompanies, but is not part of, the IFRS for SMEs

A Guide for Micro-sized Entities Applying the IFRS for SMEs (2009) is issued by the IFRS Foundation

and has not been approved by the International Accounting Standards Board (IASB).

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CONTENTS

from page

INTRODUCTION 4

A GUIDE FOR MICRO-SIZED ENTITIES APPLYING THE IFRS FOR SMEs (2009)

Guide section:

1 INTENDED SCOPE OF THIS GUIDE 6

2 CONCEPTS AND PERVASIVE PRINCIPLES 7

3–8 FINANCIAL STATEMENT PRESENTATION 10

9 CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 27

10 ACCOUNTING POLICIES, ESTIMATES AND ERRORS 28

11–12 FINANCIAL INSTRUMENTS 31

13 INVENTORIES 42

14–15 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 46

16 INVESTMENT PROPERTY 46

17 PROPERTY, PLANT AND EQUIPMENT (PPE) 46

18 INTANGIBLE ASSETS OTHER THAN GOODWILL 51

19 BUSINESS COMBINATIONS AND GOODWILL 52

20 LEASES 52

21 PROVISIONS AND CONTINGENCIES 56

22 EQUITY 60

23 REVENUE 62

24 GOVERNMENT GRANTS 68

25 BORROWING COSTS 69

26 SHARE-BASED PAYMENT 69

27 IMPAIRMENT OF ASSETS 70

28 EMPLOYEE BENEFITS 76

29 INCOME TAX 80

30 FOREIGN CURRENCY TRANSLATION 89

31 HYPERINFLATION 90

32 EVENTS AFTER THE END OF THE REPORTING PERIOD 90

33 RELATED PARTY DISCLOSURES 92

34 SPECIALISED ACTIVITIES 95

35 TRANSITION TO THE IFRS FOR SMEs 96

A GUIDE FOR MICRO-SIZED ENTITIES APPLYING THE IFRS FOR SMES (2009)

3  IFRS Foundation

Introduction

This Guide accompanies, but is not part of, the IFRS for SMEs.

IN1 Many requirements of the International Financial Reporting Standard for Small and

Medium-sized Entities (IFRS for SMEs) will not be relevant to micro-sized entities

(‘micro entities’) as they generally only encounter a narrow range of simple

transactions.

IN2 This Guide is intended to help micro entities that are within the scope of the

IFRS for SMEs, ie who do not have public accountability (see paragraph G2), and

are either required to prepare general purpose

...