CANADA: Local standards are used for financial reporting in Canada and SMEs may apply options under differential reporting…
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…
UZBEKISTAN: Small or non-public interest entities currently apply a simplified set of local standards…
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 discussed yet.
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 eventually.
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 reporting entities.
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 beneficial.
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 emerges.
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 requirements.
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 Private Entities.
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 released.
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 long-term strategy.
AUSTRALIA 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 globalisation.
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 released.
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.