Hierarchy of IFRS Statements
Generally, all IFRS statements have to be implemented and are relevant in order to comply with the core set of IFRS financial statements. But not all IFRS statements are equally important for the group of small and medium-sized companies. The IASB project for SMEs and the first preliminary draft indicates that different parts of the IFRS standards are more important than others. The relevance of IFRS statements for small and medium-sized companies could be ranked into different levels, depending on the information required. For instance, a cash flow statement or a separation between long-term and short-term balance sheet sections could be seen as a simple mathematical or technical accounting procedure. The regrouping of balance sheet sections from local GAAP balance sheet formats to IFRS prescribed formats is a basic mechanical or technical approach which could be solved by using, for example, accounting software, which is able to perform this process.
KeywordsBalance Sheet Intangible Asset Reporting Requirement Cash Flow Statement Revenue Recognition
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