Riyadh—Amlak
The Saudi Organization for Certified Public Accountants recently organized a workshop at the King Faisal Conference Hall at the InterContinental Hotel in Riyadh,a workshop on International Financial Reporting Standards (IFRS) for small and medium-sized enterprises (SMEs), featuring a presentation by Paul Bactor, an advisor to the International Accounting Standards Board (IASB).
He began his remarks by discussing the objectives of the International Financial Reporting Standards Foundation, which include meeting the needs of small and medium-sized enterprises, and also addressed the standards issued by the International Accounting Standards Board, dividing them into two parts:
Part One: International Financial Reporting Standards required or permitted for companies registered in 123 jurisdictions, as well as for companies not registered in 98 jurisdictions; Part Two: International Financial Reporting Standards for Small and Medium-Sized Entities, issued in July 2009; the number of jurisdictions that permit, require, or plan to adopt these standards within the next three years stands at 80.
Paul Bactor also noted that the International Financial Reporting Standards for Small and Medium-Sized Entities are simplified standards based on the International Financial Reporting Standards, and are designed for small and medium-sized enterprises as well as being internationally recognized. The simplification process involves omitting certain topics included in the International Financial Reporting Standards (IFRS) if they are not relevant to private-sector enterprises, and when the International Financial Reporting Standards (IFRS) include multiple options, only the simplest option is included, along with simplifying recognition and measurement, reducing disclosures, and simplifying the wording.
In conclusion, Paul Bactor emphasized that the application of International Financial Reporting Standards for small and medium-sized entities has resulted in higher-quality reports, reports tailored to the capabilities of small businesses, reports suited to meet the needs of lenders and creditors, and reports that are understandable on an international scale.
He added that it stands to reason that if capital providers understand the financial figures and have confidence in them, this will improve the ability of small and medium-sized enterprises to obtain the capital they need, which will ultimately lead to an improvement in the economy in which they operate.
At the conclusion of the workshop, Jihad Al-Omari, Chairman of the Authority’s Accounting Committee, thanked the attendees and noted that the workshop was held as part of the Authority’s efforts—represented by the Accounting Committee—to raise the level of cultural understanding and awareness regarding the accounting and auditing profession.