for Small and Medium-sized Entities (SMEs) IFRS for …

1 2015. International financial Reporting Standard ( ifrs ). for Small and Medium-sized Entities ( smes ). ifrs for smes . This official pronouncement incorporates 2015 Amendments to the ifrs for smes (effective 1 January 2017 with early application permitted). PART A. the requirements International financial Reporting Standard for Small and Medium-sized Entities ( ifrs for smes ). The International financial Reporting Standard for Small and Medium-sized Entities ( ifrs for smes ) is issued by the International Accounting Standards Board (IASB). Disclaimer: the IASB, the ifrs Foundation, the authors and the publishers do not accept responsibility for any loss caused by acting or refraining from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise. International financial Reporting Standards (including International Accounting Standards and SIC and IFRIC Interpretations), Exposure Drafts and other IASB and/or ifrs Foundation publications are copyright of the ifrs Foundation.

2 Copyright 2015 ifrs Foundation . ISBN for this part: 978-1-911040-08-8. ISBN for complete publication (two parts): 978-1-911040-07-1. All rights reserved. No part of this publication may be translated, reprinted, reproduced or used in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without prior permission in writing from the ifrs Foundation. The approved text of International financial Reporting Standards and other IASB publications is that published by the IASB in the English language. Copies may be obtained from the ifrs Foundation. Please address publications and copyright matters to: ifrs Foundation Publications Department 30 Cannon Street, London EC4M 6XH, United Kingdom Tel: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 2749.

3 Email: Web: The ifrs Foundation logo/the IASB logo/the ifrs for smes logo/ Hexagon Device', ifrs Foundation', ifrs Taxonomy', eIFRS', IASB', ifrs for smes ', IAS', IASs', IFRIC', ifrs ', IFRSs', SIC', International Accounting Standards' and International financial Reporting Standards' are Trade Marks of the ifrs . Foundation. Further details of the Trade Marks, including details of countries where the Trade Marks are registered or applied for, are available from the ifrs Foundation on request. The ifrs Foundation is a not-for-profit corporation under the General Corporation Law of the State of Delaware, USA and operates in England and Wales as an overseas company (Company number: FC023235) with its principal office as above. ifrs FOR smes 2015. CONTENTS. from page INTERNATIONAL financial REPORTING STANDARD. FOR Small AND Medium-sized Entities ( ifrs FOR smes ).

4 PREFACE 6. Section 1 Small AND Medium-sized Entities 10. 2 CONCEPTS AND PERVASIVE PRINCIPLES 12. 3 financial STATEMENT PRESENTATION 22. 4 STATEMENT OF financial POSITION 27. 5 STATEMENT OF COMPREHENSIVE INCOME AND INCOME STATEMENT 31. 6 STATEMENT OF CHANGES IN EQUITY AND STATEMENT OF INCOME AND. RETAINED EARNINGS 34. 7 STATEMENT OF CASH FLOWS 36. 8 NOTES TO THE financial STATEMENTS 41. 9 CONSOLIDATED AND SEPARATE financial STATEMENTS 43. 10 ACCOUNTING POLICIES, ESTIMATES AND ERRORS 50. 11 BASIC financial INSTRUMENTS 55. 12 OTHER financial INSTRUMENT ISSUES 71. 13 INVENTORIES 79. 14 INVESTMENTS IN ASSOCIATES 84. 15 INVESTMENTS IN JOINT VENTURES 88. 16 INVESTMENT PROPERTY 92. 17 PROPERTY, PLANT AND EQUIPMENT 95. 18 INTANGIBLE ASSETS OTHER THAN GOODWILL 102. 19 BUSINESS COMBINATIONS AND GOODWILL 107. 20 LEASES 113. 21 PROVISIONS AND CONTINGENCIES 121.

5 Appendix Guidance on recognising and measuring provisions 125. 22 LIABILITIES AND EQUITY 130. Appendix Example of the issuer's accounting for convertible debt 137. 23 REVENUE 140. Appendix Examples of revenue recognition under the principles in Section 23 147. 24 GOVERNMENT GRANTS 153. 25 BORROWING COSTS 155. 26 SHARE-BASED PAYMENT 156. 27 IMPAIRMENT OF ASSETS 163. 28 EMPLOYEE BENEFITS 171. 29 INCOME TAX 182. 3 ifrs Foundation ifrs FOR smes 2015. 30 FOREIGN CURRENCY TRANSLATION 192. 31 HYPERINFLATION 198. 32 EVENTS AFTER THE END OF THE REPORTING PERIOD 201. 33 RELATED PARTY DISCLOSURES 204. 34 SPECIALISED ACTIVITIES 208. 35 TRANSITION TO THE ifrs FOR smes 213. APPENDIX A: EFFECTIVE DATE AND TRANSITION 219. APPENDIX B: GLOSSARY OF TERMS 220. DERIVATION TABLE 241. APPROVAL BY THE BOARD OF THE ifrs FOR smes ISSUED IN JULY 2009 243. APPROVAL BY THE BOARD OF THE 2015 AMENDMENTS TO THE ifrs FOR.

6 smes ISSUED IN MAY 2015 244. FOR THE ACCOMPANYING DOCUMENTS LISTED BELOW, SEE PART B OF THIS. EDITION. BASIS FOR CONCLUSIONS. ILLUSTRATIVE financial STATEMENTS. ifrs Foundation 4. ifrs FOR smes 2015. The International financial Reporting Standard for Small and Medium-sized Entities ( ifrs for smes ). is set out in Sections 1 35 and Appendices A B. Terms defined in the Glossary are in bold type the first time they appear in each section, as appropriate. The ifrs for smes is accompanied by a Preface, a Derivation Table, a Basis for Conclusions and Implementation Guidance consisting of illustrative financial statements and a table that collates the presentation and disclosure requirements in the ifrs for smes . 5 ifrs Foundation ifrs FOR smes 2015. Preface to the ifrs for smes The IASB. P1 The International Accounting Standards Board (IASB) was established in 2001 as part of the International Accounting Standards Committee (IASC) Foundation.

7 In 2010 the IASC Foundation was renamed the ifrs Foundation. P2 The governance of the ifrs Foundation rests with 22 Trustees. The Trustees'. responsibilities include appointing the members of the IASB and associated councils and committees, as well as securing financing for the organisation. P3 The objectives of the IASB are: (a) to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting Standards based on clearly articulated principles. These Standards should require high quality, transparent and comparable information in financial statements and other financial reporting to help investors, other participants in the various capital markets of the world and other users of financial information make economic decisions. (b) to promote the use and rigorous application of those Standards.

8 (c) in fulfilling the objectives associated with (a) and (b), to take account of, as appropriate, the needs of a range of sizes and types of Entities in diverse economic settings. (d) to promote and facilitate the adoption of its Standards. P4 Approval of Standards and related documents, such as, Exposure Drafts and other discussion documents, is the responsibility of the IASB. Full International financial Reporting Standards (full ifrs ). P5 The IASB achieves its objectives primarily by developing and publishing Standards and promoting their use in general purpose financial statements and other financial reporting. Other financial reporting comprises information provided outside financial statements that assists in the interpretation of a complete set of financial statements or improves users' ability to make efficient economic decisions. The term financial reporting' encompasses general purpose financial statements plus other financial reporting.

9 P6 Full ifrs sets out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements. They may also set out such requirements for transactions, events and conditions that arise mainly in specific industries. Full ifrs is based on the Conceptual Framework, which addresses the concepts underlying the information presented in general purpose financial statements. The objective of the Conceptual Framework is to facilitate the consistent and logical formulation of full ifrs . It also provides a basis for the use of judgement in resolving accounting issues. ifrs Foundation 6. ifrs FOR smes 2015. General purpose financial statements P7 The IASB's Standards are designed to apply to general purpose financial statements and other financial reporting of all profit-oriented Entities .

10 General purpose financial statements are directed towards the common information needs of a wide range of users, for example, shareholders, creditors, employees and the public at large. The objective of financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to those users in making economic decisions. P8 General purpose financial statements are those directed to general financial information needs of a wide range of users who are not in a position to demand reports tailored to meet their particular information needs. General purpose financial statements include those that are presented separately or within another public document such as an annual report or a prospectus. The ifrs for smes P9 The IASB develops and issues a separate Standard intended to apply to the general purpose financial statements of, and other financial reporting by, Entities that in many countries are referred to by a variety of terms, including Small and Medium-sized Entities ( smes ), private Entities and non-publicly accountable Entities .