CANADA: Local standards are used for financial
reporting in Canada and SMEs may apply options under differential
UGANDA: Uganda has adopted IFRS for all
entities and wants simplified international standards because it is
too complex for SMEs…
BARBADOS: All companies in Barbados must use
IFRS, although foreign companies licensed under specific
legislation may use the GAAP of their parent company…
or non-public interest entities currently apply a simplified set of
Local standards are used for financial reporting in Canada and
SMEs may apply options under differential reporting. IFRS will be
mandatory for all publicly accountable entities from 2011 and the
Canadian Accounting Standards Board says it would also be
beneficial if SME standards were set by an international body.
Despite commending the IASB’s efforts to produce IFRS for
Private Entities, it is unlikely Canada will adopt the standards in
the near term as the board is currently developing its own set of
simplified standards. An exposure draft is due early 2009.
US GAAP is used for private entity financial reporting. Small or
non-public interest entities may opt for cash or tax based
statements (or another method) if the financial information is for
management use only or specific regulatory purposes. The National
Association of State Boards of Accountancy does not believe that
there will be a rapid move to endorse the change from US GAAP to
IFRS for Private Entities.
All companies in Mexico must apply Mexican Financial Reporting
Standards, which are to converge with IFRS by 2011. The Mexican
Institute of Public Accountants says only one set of financial
accounting statements should be in place, clearly disclosing which
rules are not applicable to non-public entities.
IFRS is used in the region only when an issue is not resolved
using Argentinean accounting standards, but from 2011 IFRS will be
mandatory for all listed companies. No simplified standards
currently exist although a study is looking into the possibility of
creating a set. The issue of IFRS for Private Entities has not been
All companies in Barbados must use IFRS, although foreign
companies licensed under specific legislation may use the GAAP of
their parent company. There are no simplified standards for smaller
or non-public interest entities. The Institute of Chartered
Accountants of Barbados agrees there is a need for it and expects
the country will adopt IFRS for Private Entities immediately.
Local standards, devised by the Israeli Accounting Standards
Board, are used for private entity financial reporting. The
Institute of Certified Public Accountants in Israel does not see
any advantage using international standards, however it still
believes the jurisdiction will adopt IFRS for Private Entities
South Africa’s Accounting Practices Board adopted the IASB’s
exposure draft of IFRS for SMEs in October 2007 as a Statement of
GAAP for SMEs. It will update this to the final IFRS for Private
Entities as soon as it is issued. The South African Institute of
Professional Accountants says a third, more simplified standard, is
needed for owner managed entities.
Zimbabwe has adopted IFRS for most non-government entities and
supports simplified standards to reduce the burden on private
companies. The local institute says it is taking too long to
finalise IFRS for Private Entities and it will adopt the standard
as soon as it is published.
Uganda has adopted IFRS for all entities and wants simplified
international standards because it is too complex for SMEs. It
plans to adopt IFRS for Private Entities as soon as it is released.
Unlike most jurisdictions, it would like it to have reference to
the full IFRS to avoid contradictions.
Full IFRS is applied to all companies. Institute of Certified
Public Accountants in Kenya says there is a need for simplified
financial reporting standards issued by the IASB as full IFRS is
too technical for smaller companies. The institute will decide
whether to adopt the final standard when it is released.
Lesotho has fully adopted IFRS as its National Accounting
Standards but wants simplified international reporting standards
because IFRS is too complex for SMEs, which are the bulk of
Zambia has adopted IFRS for all entities and wants a simplified
standard as it views the cost of complying with the full standards
outweighs the benefit for small companies. Zambia expects to adopt
the new standard next year if it is released before April 2009
IFRS is not used in Tunisia and a reform of its accounting
system to include IFRS is expected to take several years. The
adoption of simplified international standards can not occur until
the reform, but the country believes such standards would be
The UK already applies a simplified set of standards for smaller
or non-public interest entities. However, the Accounting Standards
Board sees IFRS for Private Entities playing a part of the future
of UK GAAP.
Local standards are used for private entity financial reporting
in France and local audit and accounting bodies agree there is no
need for further simplified standards.
Local standards are used for private entity financial reporting
and the local standard setter believes IFRS for Private Entities
will not be adopted, as it is too complex.
Small or non-public interest entities currently apply a
simplified set of local standards. They hope to adopt IFRS for
Private Entities within the next three years.
Norway already applies a simplified set of financial reporting
standards for smaller or non-public interest entities and will
adopt IFRS for Private Entities only if an international trend
There are no plans to adopt IFRS for Private Entities in Sweden.
The local standard setter has a project to create a Swedish version
for non-listed larger limited companies.
Georgia currently applies a local simplified set of financial
reporting standards for small and medium-sized entities, but plans
to adopt IFRS for Private Entities in early 2009.
Hungary has no plans to adopt IFRS for Private Entities as it
believes it will be more complicated than present local
There are no simplified financial reporting standards for small-
and medium-sized entities in Kosovo. It is anticipated IFRS for
Private Entities will be adopted in 2010.
Lithuania has no plans to adopt IFRS for Private Entities. The
main barrier is translation.
Poland has simplified requirements for financial reporting for
entities that meet a certain criteria. There are no current plans
to adopt IFRS for Private Entities.
Romania already applies a simplified set of financial reporting
standards for smaller or non-public interest entities. The local
institute will follow the EC’s lead in future adoption of IFRS for
Serbia will adopt IFRS in 2010.
There is a need for a simplified set of financial reporting
standards in Slovakia but it is unlikely IFRS for Private Entities
will be adopted in the near future.
Full IFRS applies in Cyprus for all entities and due this burden
there are plans to adopt IFRS for Private Entities as soon as it is
Pakistan applies simplified financial reporting standards for
private entities. International standards would be welcome in order
to achieve consistency. IFRS for Private Entities will be adopted
following due process.
Two Bangladeshi institutes agree there is a need for simplified
financial reporting standards and users would benefit from them
being set internationally. IFRS for Private Entities is likely to
be adopted in 2011.
IFRS will be mandatory for listed companies in Korea from 2011.
To alleviate the burden for non-listed entities, the Korea
Accounting Standards Board will issue simplified standards in
2009.These will be converged with IFRS for Private Entities in a
Private entities in Australia are comfortable with the current
differential reporting regime. However, a locally-amended IFRS for
Private Entities will likely be made available as an option for
large private and unlisted public companies.
Local reporting rules applicable to SMEs are judged to be
working well and the proposed IFRS for Private Entities is
considered too complex. The local institute is not convinced
international standards can enhance comparability between different
jurisdictions. Further public consultations will be held once the
final standard is published.
Local standards based on IAS are used by private entities in
Malaysia. The Malaysian Accounting Standards Board says
international standards would be beneficial due to
New Zealand has simplified financial reporting standards called
Framework for Differential Reporting. IFRS for Private Entities
will be considered for implementation once it has been
Local standards that are almost identical to IFRS are required
for all companies in Singapore. The local institute supports
simplified financial reporting standards due to large number of
SMEs and anticipates adopting IFRS for Private Entities, possibly
in the second half of 2009.