Full IFRSs are generally designed for use by entities that arequoted on world’s major...

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Accounting

Full IFRSs are generally designed for use by entities that arequoted on world’s major capital markets. However, the world’smajority entities are Small and Medium sized Enterprises (SMEs) andunlisted. The IASB has developed IFRSs specific to SMEs. The mainpurpose of this was to provide a framework that generates relevant,reliable and useful information which should provide a high qualityand understandable set of accounting standards suitable forSMEs.
Required:
Create FOUR scenarios simulating a particular SME where youdescribe transactions with numerical data as well as specifiedaccounting periods. For each created scenario:
Discuss the required accounting treatment in accordance withIFRS for SMEs
Contrast the accounting treatment in (b) (i) with the treatmentunder Full IFRS.

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SME An SME is a small or medium sized enterprise according to EU definition of an SME is a business with fewer than 250 employees and a turnover of less than 50 million within this umberalla there are three different categorys medium sized small and micro business IFRS and SMEs is a self contained global accounting and financial reporting standard applicable to the general purpose financial statement of and other financial reporting by entities that in many countries are known as small and medium sized entities In july 2009 the IASB issued See Answer

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In: AccountingFull IFRSs are generally designed for use by entities that arequoted on world’s major capital...Full IFRSs are generally designed for use by entities that arequoted on world’s major capital markets. However, the world’smajority entities are Small and Medium sized Enterprises (SMEs) andunlisted. The IASB has developed IFRSs specific to SMEs. The mainpurpose of this was to provide a framework that generates relevant,reliable and useful information which should provide a high qualityand understandable set of accounting standards suitable forSMEs.Required:Create FOUR scenarios simulating a particular SME where youdescribe transactions with numerical data as well as specifiedaccounting periods. For each created scenario:Discuss the required accounting treatment in accordance withIFRS for SMEsContrast the accounting treatment in (b) (i) with the treatmentunder Full IFRS.