Standard Setting and the

1

• Standard Setting and the
• Needs of SMP/SMEs
• MOHAMED ALI ELAOUANI CHERIF
• Partner, MAZARS TUNISIA
• ______________________
• IFAC SMALL AND MEDIUM
• PRACTICES FORUM
• MALTA OCTOBER 30, 2007

2
OECT Commitment Toward International Convergence

• Full IFRSs for a category of entities
• Special concern over SMEs
• Toward convergence with IFRSs for SMEs
• Participation in the field test/IASB
• ISAs adopted in 2003

3
Main Concerns Over IFRSs for SMEs ED

• Ensure the standards reflect their needs
• Globally applicable
• Cost effectiveness
• Ease compliance burden on preparers
• Consistently implemented
• Concern over full application
• Adequate guidance

4
Special Consideration for Micros

• Tunisian Framework effective January,2008
• Tax driven concerns for rulers
• Cash based
• Inventory of PPE
• Debtors/Creditors statements
• Cash in/out

5
Primary Comments on the IFRSs for SMEs Project
ED

• Interesting documents
• Well conceived
• Dense
• Starting point for big SMEs toward full IFRSs
• Same Conceptual Framework
• Option
• Cross references
• Guidance
• National Legislations to define applicability

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but CONCERNS

• For the majority of SMEs
• Preparers needs
• Users expectations
• Cost Benefit
• Rationalize Disclosures
• Avoid Options
• Eliminate Cross References
• Post Implementation Review
• Definitely exclude Micros

7
Expected Burdens in the Present ED

• Share Based Payments (25)
• Deferred Taxes (in 28)
• Financial Reporting in Hyperinflationary
  Economies (29)
• Earnings Per Share ( (34)
• Interim Financial Reporting (37)
• Etc.