It was first in 2009 , the International Accounting Standards Board (IASB)
introduced the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). The objective of IASB was to develop a reporting framework that meets the needs of Entities that are required to
publish financial statements for external users. The initiative was taken by
IASB as this regulatory framework can be beneficial for entities and
jurisdictions for which the full application of IFRS are too complex to adopt.
IFRS for SME is a result of a five year development process with extensive
consultation of SMEs worldwide and with recent changes updated until 2015.
There are many jurisdictions around the world who have developed their own definitions and characteristics of SMEs for a broad range of purposes including prescribing financial reporting obligations. Often such national or regional definitions include quantified criteria based on Entity s revenue , assets , employees or other factors. Frequently, the term SMEs is used to mean or to include very small entities without regard to whether they publish financial statements for external users.
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