Ans.

Q7 Eight key differences between requirements of IFRS for SMEs and full IFRS:

IFRS for SMEs Full IFRS

Financial statement presentation
1. Permits to present a combined statement of Do not permit such combined statement of
income and retained earnings. income and retained earnings.

2. Does not require segment information. Require segment information for certain
entities.

3. Does not require earnings per share to be Require certain entities to present earnings
disclosed. per share.

Intangible assets
4. The intangible assets with indeterminable Require intangible assets with indefinite life to
useful life are considered to have ten years of be carried at cost less impairment loss, if any
useful life. and such assets are not depreciated.

5. The development and research expenditures Require development costs which meet the
are always recorded as an expense. specified condition to be capitalized as an
asset.

Investment property
6. Investment property whose fair value can be Allow an accounting policy choice of either fair
measure reliably without undue cost or effort value through profit or loss or a cost model
shall be measured at fair value at each (with some limited exceptions).
reporting date.

Borrowing costs
7. All borrowing costs shall be recognised as an Require borrowing costs directly attributable
expense in profit or loss. to a qualifying asset to be capitalized.

Business combination
8. The goodwill is measured at cost less The goodwill acquired in a business
accumulated amortisation and any combination is only subject to impairment
accumulated impairment losses. testing at least annually and is not amortised.

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