ICAJ Hosts Stakeholders' Forum On SMEs

The ICAJ, through its Accounting Standards Committee, hosted a forum on Wednesday, September 21, at the Hilton Kingston Hotel, at which stakeholders responded to a questionnaire issued by the International Accounting Standards Board (IASB). The IASB sought comments from standard-setters and other interests on how the Financial Reporting Standards for Small and Medium-sized Enterprises (SMEs) should be developed.

The forum attracted practitioners, preparers, users of financial statements and other key stakeholders who are particularly concerned with small and medium-sized enterprises.

The issues and concerns raised during the forum were submitted to the IASB for consideration as it prepares to develop standards for SMEs. Participants disagreed with the new definition of small and medium-sized entities promulgated by the IASB, since it would omit a significant number of entities that do not have public accountability and prepare general-purpose financial statements for external users. Such external users do not include owner-managers, existing or potential creditors and rating agencies.

This change is problematic for developing countries that do not have differential reporting, as these entities form a large block of the trading entities. Our Companies Act does not make such a distinction.

Participants were generally of the view that, as a body, the Institute should consider ways to be creative and submit new ideas to the IASB in commenting on exposure drafts.

The forum was organised in recognition of the fact that a number of requirements of IFRS present major compliance difficulties for emerging markets like Jamaica because of the lack of, or the underdevelopment, of underlying structures.

The Institute is encouraged by the participation of the various stakeholders and intends to have similar forums in the future on other related topics.



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