IFRS for Small and Medium-sized Entities (SMEs)

International Financial Reporting Standards (IFRS)

U.S. GAAP Codification

IFRS International Standards

Accounting Standards, ASC

IFRS for Small and Medium-sized Entities (SMEs)
Section 11: Basic Financial Instruments

IFRS, U.S. GAAP Codification, IFRS Overview, IFRS for SMEs

Principles of Accounting, Intermediate Accounting, Accounting Textbooks

Securities Law Library, U.S. Tax Code by Section, Accounting Terms

IFRS for SMEs
Section 11: Basic Financial Instruments

IFRS-SME

1. Small and Medium-sized Entities have a choice of
--> Method 1 or Method 1

2. Method 1
(1) for recognition and measurement
--> SME 11 and SME 12

(2) for disclosures
--> SME 11 and SME 12

3. Method 2
(1) for recognition and measurement
--> IAS 39

(2) for disclosures
--> SME 11 and SME 12

4. Classification of Financial Instruments (FI) by SME

(1) basic financial instruments
--> SME 11 is applied

(2) complex financial instruments
--> SME 12 is applied

5. Examples of Basic Financial Instruments
(1) cash
(2) accounts receivable
(3) accounts payable
(4) notes receivable
(5) notes payable
(6) loans receivable
(7) loans payable
(8) commitment to receive a loan
(9) investments in non-puttable ordinary shares
(10) investments in non-convertible and non-puttable preference shares

6. Initial measurement of basic FI

(1) FVPL Basic FI
--> at transaction price

(2) Other Basic FI
--> at transaction price + transaction costs

7. FVPL Basic FI
--> Basic Financial Instruments
--> measured at Fair Value through Profit or Loss

8. Subsequent measurement of basic FI

(1) Investments in (A) and (B) that are publicly traded or FV can be reliably measured
--> measured at FVPL
--> (A) non-puttable ordinary shares
--> (B) non-convertible, non-puttable preference shares

(2) Investments in (A) and (B) whose FV cannot be reliably measured
--> cost - impairment

(3) Other Basic FI
--> Amortised cost
--> using effective interest method

IFRS

[IAS 39.9]
Four Categories of Financial Instruments (FI)

(1) FA or FL at Fair Value through Profit or Loss
(2) Held-to-Maturity investments
(3) Loans and Receivables
(4) Available-for-Sale FA

FA: Financial Asset
FL: Financial Liability

U.S. GAAP Codification

Topic 320: Investments - Debt and Equity Securities

Investments in debt securities
(1) Trading securities
(2) Held-to-Maturity securities
(3) Available-for-Sale securities

Investments in equity securities
(1) Trading securities
(2) Available-for-Sale securities

IFRS for SMEs

U.S. GAAP Codification