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Small and medium sized enterprises (SMEs) are being urged to give their feedback so that the International Accounting Standards Board can better tailor a global financial reporting standard to help them.
Accountants say the industry is now debating the size of the companies that should be subject to the new standards. And that could have a huge impact on local small players.
Local SMEs may want to sit up and think about how they will be affected by an international financial reporting standard.
Accountants say there are developments now that would help or hurt SMEs involved, even though the new standard is expected to be ready only in the middle of next year.
At issue is what level of revenue should companies have before they are governed by the new standards.
Ernest Kan, Vice President, Institute of Certified Public Accountants S'pore, said: "So it's important for them to watch out for this because they would have vested interest as to where to draw the line, especially those companies having revenues between $1 million to $5 million. Should it be at $5 million? Should it be at $1 million? The SMEs really have to feedback on this one so that the authority know what is best for them."
A simpler accounting standard for SMEs is expected to cut the current volume of accounting load for such companies by more than 85 percent.
But there have been some concerns the simpler standard will make it difficult for SMEs to present financial statements that will comply with the full standard when they want to list on the stock market.
Still, accounting professionals expect most smaller SMEs to welcome the new, simpler version.
They urge local companies to take time to share their views on the existing draft for the simpler standard.
They have up to September 1st to give their feedback.
Separately, the Institute of Certified Public Accountants of Singapore signed a Memorandum of Cooperation with its Vietnamese counterparts.
The move is expected to help both sides share notes on accounting and corporate governance standards, as well as boost Singapore professionals' understanding of how to structure a business or agreement in Vietnam. - CNA/ch
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