SLFRS for SMEs: Why it matters

Thursday, 22 December 2011 00:22 - - {{hitsCtrl.values.hits}}

A seminar on SLFRS for SMEs was organised by SJMS Associates with a view to meet its challenges faced by the industry essentially focusing on small and medium enterprises.

SLFRS for SMEs is a much simplified standard that offers a toned down version of the full SLFRSs. It is a standalone standard, with the effective date being for financial periods beginning on or after 1 January 2012, which is eligible to be used by any entity that does not have public accountability; those who however, cannot follow the SME standard are many, but includes, a listed entity, insurance companies, finance companies, leasing companies, banks etc.

This standard primarily provides a concise guidance to full SLFRSs, comprising 35 sections all together, although a comprehensive document by its merit with nearly 400 pages, this was essentially summarised and presented at this event by some of the passionately proficient professionals of the firm in a manner that was much easy-to-understand.

Illustrating on the subject matter, among other key factors that were discussed, the emphasis was more so towards reducing financial reporting costs, disclosure requirements, the impact on its stakeholders whilst, looking at the challenges faced by first-time adoption and managing that transition.

Summation of specifics, put forward as some the vital take-home points were; those eligible companies as stated above essentially have a choice between which standard they wish to follow, and of course the importance of training all finance professionals on the new standard whilst elucidating the benefit of doing a gap analysis between the current standard and the new standard to understand the impact of the SME standard, and the significance of preparing the transition balance sheet taking into account the first time adoption choices available and more notably the emphasis was on some of crucial factors such as the importance of the transition that needs to be driven by top management.

Addressing a large audience of finance professionals, this event was an exclusive opportunity provided by the firm for its esteemed clientele given the timeliness of the topic and also the importance of the subject matter, which was rather evident at this event’s packed-capacity participation with nearly 200 guests from a wide spectrum of industries across the board.

The seminar was organised by SJMS Associates, Chartered Accountants, and an independent correspondent firm to the global professional services firm Deloitte Touche Tohmatsu.