PFRS for Small ENTITIES (SE’s) and PFRS for SME’S

PFRS for SME PFRS for SE

Similarities
Non-public interest entities with
Non-public interest entities with
Total Assets of 100M to 350M and
Total Assets or Total Liabilities of
Total Liabilities of 100M to350M
less than 100M

1. Income Tax 1. Income Tax

- Deferred Tax expense is included in computing income Similar in reporting the following: - Deferred Tax expense is optional in computing income tax expense
tax expense 2. Post employment Benefits
1. Revenue
2. Post employment Benefits - No recognition of actuarial gains or losses. Retirement is calculated
- Actuarial gains or losses is recognized immediately in 2. Foreign Currency Transactions using accrual approach. No consideration of changes in future salary
either P/L or OCI and service periods.
3. Complete Set of Financial Statements 3. Borrowing costs 3. Complete Set of Financial Statements
- Statement of Comprehensive Income is included - Statement of Comprehensive Income is not included
4. Impairment
4. Correction of Error 4. Correction of Error
- Effects are accounted for retrospectively. Restatement of 5. Investment Property - Effects are accounted for prospectively. No restatement of
Comparative FS is required Comparative FS is required
5. Disclosure about Judgment and Estimates 6. Related Party Disclosures 5. Disclosure about Judgment and Estimates
- It is required - It is not required.
7. Provisions and Contingencies
6. Investment in Subsidiary 6. Investment in Subsidiary
- Consolidated FS is required 8. Investment in Associates and - Consolidated FS is optional.
7. Inventory Joint Ventures 7. Inventory
- Measured @ Lower of Cost and Est. selling price less - Measured @ Lower of Cost or market
Cost to sell and cost to complete 9. Business Combination 8. Basic Financial Instruments
8. Basic Financial Instruments - Measured @ lower of cost or FV
10. Government Grants
- Measured @FVPL 9. Leases
9. Leases - Accounted for Operating lease. Payments are recognized as
- Classified either Operating or Finance. Payments are income/expense when earned/incurred.
recognized as income/expense on a straight line basis 10. Property, Plant and Equipment
10. Property, Plant and Equipment - Measured using Cost Model and Fair Value Model
- Measured using Cost Model and Revaluation Model 11. Agriculture
11. Agriculture - Biological assets are accounted using Cost Model or Current Market
- Biological assets are accounted FV less Cost of Disposal price Model
12. Share-Based Transactions 12. Share-Based Transactions
-Equity-settled @FV of goods/services received -Equity-settled @ net asset value of the equity instruments granted