Last updated on November 12th, 2010 at 02:43 pm

If you run an SME you may not yet be aware of the new accounting rules due to come into effect on 1st January 2013 which have the typically snappy name of “The International Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs)”. The aim of the new standard is just that – did you know that in the EU there are over 50 sets of accounting standards being used – to make like easier for investors in businesses and lenders.

A copy of the complete standards along with checklists etc can be downloaded from the IFRS website

There will be extra work involved for businesses during the transition from the current accounting standards, particularly the setting up a new format for the financial statements and making fair value assessments where required by the IFRS for SMEs. In addition,the  transition will involve restating the 2011 UK GAAP numbers so that the 2012 accounts can have the correct values for comparison with the previous year.  This really means that you will have to produce two sets of financial statements for that year (one in each format).  Changes to the accounting systems before that year may be needed in order to let you capture and report the information needed to produce the new format.

If you are at all worried about this forthcoming change in accounting standards we suggest that you talk to your accountant about any work that you need to do in preperation.  You may also want to look at training for your senior accounts staff so that they know what to expect, sources of training include  AdkinsMattchett&Toy who run public courses here in the UK.