IFRS XBRL Taxonomy Framework IFRS-GP and IFRS-SMEs

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• IFRS XBRL Taxonomy Framework IFRS-GP and IFRS-SMEs

Holger Obst IASC Foundation XBRL Team
Member Haiko Philipp IASC Foundation XBRL Team
Member
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Small and Medium-sized EntitiesArchitecture

• Agenda
• Accounting background of IFRS for SMEs Exposure
  draft (SME-ED)
• Architecture Alternatives
• Core Schema
• Extension Schema
• Separate Schema

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IFRS for SME Exposure Draft (SME-ED)
Scope of the SME-Standard

• Small and medium-sized entities that
• Do not have public accountability and
• Publish general purpose financial statements for
  external users

Type and structure of the SME-Standard

• Standard as a stand-alone document separated from
  existing IAS and IFRS Standards
• Standard drafted to cover all type of
  transactions and other events typically
  encountered for SMEs or conditions with only
  minimal cross-rereferences to full IFRSs

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Full IFRSs as basis for the SME-ED
Top-Down-Approach

• SME-ED developed on the basis of full IFRSs as
• Extracting the fundament concepts from the IASB
  Framework
• Extracting principles and related mandatory
  guidance from the full IFRSs
• Modifications for recognition and measurement
  simplifications
• Extending accounting policy options
• All accounting options of full IFRSs also
  available within the SME-ED
• New accounting options (e.g. Expense Model for
  development cost)
• Simplification or new regulation for complex or
  cost intensive accounting policies
• Financial instruments
• Subsequent measurement for goodwill (impairment)
• Leases

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Cross-Rereference to the full IFRSs
Cases for cross-rereference to the full IFRSs

• IFRS for SMEs points to the full IFRSs
• Accountings options not explicitly stated in the
  SME-Standard
• SME-ED refers to the full IFRSs in cases of
  missing regulations
• Segment reporting
• Interim reporting
• Earnings per share
• Equity-settled share-based payments

Accordences between IFRS for SMEs and full IFRSs
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Accordences IFRS for SMEs and full IFRSs
Full IFRSs (IFRS-GP Taxonomy)
IFRS for SMEs (IFRS-SME Taxonomy)
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Issues and approaches for IFRS-SME taxonomy
Questions for building and implementing IFRS-SME
taxonomy

• New label linkbase or using existing IFRS-GP
  labels?
• Embedding IFRS-GP reference linkbase?
• Statement coverage?

Different ways to organise IFRS-GP and SME
Taxonomy

• Extension Schema approach
• Core Schema approach
• Separate Schema approach

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Extension Schema approach

• Disadvantage
• Unwanted IFRS-GP elements in SME taxonomy
• overlapping resources on SME and IFRS-GP
  elements
• different life cycles

• Advantage
• Comparable

SME Basic layer
IFRS Basic layer
IFRS-GP Full element set
SME SME spec. elements
SME-Lab
IFRS-Lab
SME-Ref
IFRS-Ref
Presentation layer
SME No elements
IFRS-GP No elements
IFRS-Pres
SME-Pres
IFRS-Calc
SME-Calc
IFRS-Def
SME-Def
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Unwanted overlapping elements in SME taxonomy
Resources on overlapping elements
SME Basic layer
IFRS Basic layer
IFRS-GP
SME
SME-Ref
IFRS-Ref
IFRS-Ref

• large DTS with not needed relations

Unwanted elements
SME Basic layer
IFRS Basic layer
IFRS-GP
SME
IFRS-Ref
IFRS-Ref

• Elements which are never used in SME Taxonomy
• Confusing for taxonomy developer who use the SME
  Taxonomy extension

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different life cycles
IFRS-GP 2006
2006
SME 2006
IFRS-GP 2007
SME Report based on IFRS-GP 2007 Taxonomy
2007
SME 2007
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Extension Schema approach

• Disadvantage
• Different life cycles

• Advantage
• Comparable
• Minimal resouces set
• All elements are accessible

IFRS-GP Full element set
Basic layer
IFRS-GP No elements
SME SME spec. elements
SME-Lab
IFRS-Lab
SME-Ref
IFRS-Ref
Presentation layer
SME No elements
IFRS-GP No elements
IFRS-Pres
SME-Pres
IFRS-Calc
SME-Calc
IFRS-Def
SME-Def
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Core Schema approach

• Disadvantage
• Different life cycles
• Maintenance
• Overlapping resources

• Advantage
• Comparable
• Minimal element set

Core Shared element set
Core-Lab
Core-Ref
Basic layer
IFRS-GP IFRS spec. elements
SME SME spec. elements
SME-spec.-Lab
IFRS-spec.Lab
SME-spec.-Ref
IFRS-spec.Ref
Presentation layer
SME No elements
IFRS-GP No elements
IFRS-Pres
SME-Pres
IFRS-Calc
SME-Calc
IFRS-Def
SME-Def
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Core Schema approach

• Disadvantage
• Different life cycles
• Maintenance

• Advantage
• Comparable
• Minimal element set
• Minimal resource set

Core Shared element set
Basic layer
IFRS-GP IFRS spec. elements
SME SME spec. elements
IFRS-Lab
SME-Lab
IFRS-Ref
SME-Ref
Presentation layer
SME No elements
IFRS-GP No elements
IFRS-Pres
SME-Pres
IFRS-Calc
SME-Calc
IFRS-Def
SME-Def
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Separate Schema approach

• Disadvantage
• Not comparable
• Additional mechanism needed

• Advantage
• No life cycle problem
• Maintenance
• Minimal element set
• Minimal resource set

Basic layer
IFRS-GP IFRS elements
SME SME elements
IFRS-Lab
SME-Lab
IFRS-Ref
SME-Ref
Presentation layer
SME No elements
IFRS-GP No elements
IFRS-Pres
SME-Pres
IFRS-Calc
SME-Calc
IFRS-Def
SME-Def
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Conclusion

• SME ED still under review process
• preferred Separated schema aproach
• Option to merge IFRS-GP and SME Taxonomy later
• Separated standards

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Thank you for your attention! Questions?