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Small Business Accounting1/21/10 - At least 35 countries have said they will use international accounting rules for smaller businesses within three years, which places pressure on the world’s developed nations to take on the new standards. The countries – many from developing and emerging economies – have indicated they will either require or permit the use of the international financial reporting standards (IFRS) for small and medium-sized businesses (SMEs) by 2013. The IASB’s seven-year project to produce a consistent set of accounting rules for SMEs culminated in the release of a 230-page booklet last July. The booklet, designed for 99% of the world’s unlisted companies, was welcomed by the World Bank and other international organisations as a means to bring capital into emerging economies. With consistent global accounting rules it is hoped investors will be able to better understand the value of a company, where ever it may exist across the world. Europe was among those who first supported the idea of international accounting standards for SMEs in 2004, which helped convince a reluctant IASB to begin work on the project. Six years on and the situation has reversed. There are voices in Europe today expressing reluctance to adopt the new rules while the IASB is attempting to promote global adoption. Germany and France both rely on their accounting systems for tax collection, which is fuelling reluctance to support the standards. Countries which indicated they plan to require accounting rules within three years: Bahamas, Bahrain, Brazil, Malaysia, Mongolia, Panama, Saudi Arabia, Cyprus, El Salvador, Ireland, Kosovo, Lebanon, Malawi, Singapore, Swaziland, South Africa, Turkey, Uganda, United Kingdom Plan to permit within three years: Argentina, Austria, Chile, Nigeria, Sri Lanka, Tanzania, Denmark, Israel, Namibia, United States, Uzbekistan May require or permit: Albania, Australia, Hong Kong, Norway, Romania, Slovakia, Iceland, Moldova, New Zealand, Sweden, Taiwan No plan to require or permit: Canada, France, Germany, Mexico, Netherlands, Poland, Japan, Malta, Slovenia, Switzerland |
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