Applicability of "Section 10" of IFRS for SMEs.
Written by:Diomer Antonio Galán Rincón.
Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.
The biggest changes in recent years have not only taken place in technology, but have also involved social sciences as well as strategies in a changing world for companies. These changes have demanded a new attitude on the part of stakeholders not to be left behind in the new concepts of a modern society based on success and based on simplistic and complex techniques, where lies the initiative that organizations must adapt to these concepts, to experience constant and rapid changes.
Therefore, as a result of globalization, they lead to think of a change in the way of recognizing the possibilities of generating more training and generation within the business, where there are elements of competencies in reference to the management of financial and necessary information.
It should be noted that in the search for these changes, the information must be increasingly useful, truthful and reliable, which is why the IFRS for SMEs (International Financial Reporting Standards for small and medium-sized companies) were created, with the purpose of reinforcing the bases that support accounting theory, seeking to improve and harmonize accounting practices; with the sole objective of being global standards that are of high quality, understandable and of mandatory compliance, transparent and comparable in the financial statements.
¿What are the IFRS for SMEs?
IFRS for SMEs are a set of standards or pronouncements issued by the IASB.
The IFRS for SMEs are composed of a conceptual framework, a set of standards and interpretations of these standards, where the conceptual framework is responsible for guiding when there are no guidelines on their issues. Thus constituting the international standards in the development of the accounting activity and suppose an accounting manual, since they study the possibility of an accounting accepted in the world.
¿ What does section 10 of IFRS for SMEs say?
According to IFRS for SMEs, Section 10, paragraph. 10.1.
This section provides guidance on the selection and application of accounting policies used in the preparation of financial statements. It also covers changes in accounting estimates and corrections of errors in prior period financial statements.
In the same way, the IFRS for SMEs are arranged by topic, with each content presented in a separate numbered section, where the recognition, measurement, presentation and disclosure requirements are established for transactions and other events; and conditions that are important in financial statements for general information purposes.
Finally, section 10 of the IFRS for SMEs is intended to provide guidance for the selection and application of accounting policies to be used in the preparation of the statements of position and income statements, and also covers movements in accounting valuations and corrections of bad procedures in financial statements of previous periods.
I hope you like my article and I would appreciate all your comments.
Bibliographical Reference:
1 Capielo, D. and Catrinacio, S. (2013). International Financial Reporting Standards for Small and Medium Sized Entities (Niif Pymes) Case: Commercial Company (Hypothetical). Paper presented at the National Experimental University of Guayana. Guatana, Venezuela.
2- Martínez, R (2009) Accounting Manual for SMEs. Editorial. Club Universitario. San Vicente.
3.- Navarro, E. and Russo, J (2014) Application section 13 of IFRS -SMEs of the vehicle parts companies of the Municipality Colón, Zulia State.
4.- Section 10 Accounting Policies of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) published by the International Accounting Standards Board on July 9, 2009.
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A very important analysis for financial and accounting analysis regarding the applicability of "Section 10" of IFRS for SMEs. Greetings my friend and thank you for your contribution.
Greetings friend @carlos.84. Yes, it is very important for organizations to be able to apply IFRS in all its sections to have a universal language and open their doors to new investors