Saudi Organization for Certified Accountants (SOCPA ) held at King Faisal Conference Hall of Riyadh Intercontinental Hotel, at six-thirty p.m. on Monday, 09.05.1435 H corresponding to 10.03.2014 AD a work- shop on International Financial Reporting Standards for Small and Medium-sized Entities, presented by Mr. Paul Pacter, IASB Advisor.
At the outset of his speech Mr. Paul Pacter brought up the goals of IFRS Foundation , one of which is taking account of the needs of small and medium-sized entities. Then, he took up IASB's standards, dividing them into two parts:
The first part - IFRS required or permitted for listed companies in 123 jurisdictions as well as for unlisted companies in 98 jurisdictions.
The second part - IFRS for SMEs, issued in July 2009. Over 80 jurisdictions already permit or require its use or plan to do so in the next three years.
Mr. Paul Pacter mentioned that IFRS for SMEs are simplified IFRSs, but built on an IFRS foundation, designed specifically for SMEs and is internationally recognized . The process of simplification from full IFRS is as follows:
1. Some topics in IFRS omitted if irrelevant to private entities.
2. Where IFRS have options , include only the simpler option.
3. Simplifying recognition and measurement.
4. Reduced disclosures.
5. Simplified drafting.
In conclusion, Mr. Paul Pacter confirmed that, application of IFRS for SMEs has resulted in:
- Better quality reporting.
- Tailored for the capabilities of small companies.
- Tailored for the needs of lenders and creditors.
- understandability across borders.
It is obvious that, if capital providers understand and have confidence in financial figures, an SME's ability to obtain the it needs improves. Ultimately, the economy in which it operates improves.
At the conclusion of the workshop the Chairman of SOCPA Accounting Standards Committee, Mr. Jehad Al-Amri thanked the audience and pointed out that this workshop came within the efforts being undertaken by SOCPA represented in its accounting standards committee to raise the public awareness on the accounting and auditing profession and related matters.