In our last edition, we announced the publication by the IASB of the accounting standard ‘IFRS for SMEs’.  As a result, considerable debate has emerged as to the benefits of implementation of such a standard in an Australian context, and it appears that this matter will remain unresolved for quite some time.

At its July meeting, the AASB have determined that an impediment to progressing this issue lies in the current inability to precisely identify the objectives of financial reporting in Australia, and therefore how an alternative SME reporting framework might be aligned with such objectives. 

The AASB therefore find themselves revisiting fundamental concepts and are likely to involve Treasury and ASIC in this process so that divergence between the requirements of AASB standards and government policy with respect to financial reporting in Australia does not develop.

It is likely that Australian constituents will be invited to comment upon any proposals for changes to a framework for differential reporting. As a result of this process, it is envisaged that the road forward will remain somewhat clouded until at least quarter one of 2010.