IFRS for SMEs / Section 1: Small and Medium-sized Entities
Section 1: Small and Medium-sized Entities
Section 1 decides who may use the Standard: entities without public accountability that publish general purpose financial statements for external users. An entity whose debt or equity trades in a public market, or that holds assets in a fiduciary capacity for a broad group of outsiders as a primary business, has public accountability and may not use it.
South African practice
In South Africa the Companies Regulations add a second test: the Public Interest Score decides which frameworks a company may use and whether its statements must be audited or independently reviewed.
How Sight applies it
Sight calculates the Public Interest Score on the engagement's Information tab and blocks finalisation when the score does not permit IFRS for SMEs.
Related
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