Similarities and Differences: A comparison of IFRS for SMEs, “full IFRS” and Belgian GAAP

Until IFRS for SMEs is adopted in Europe, and maybe in Belgium, you may find this publication useful in helping you identify key differences between Belgian GAAP and full IFRS, as well as with IFRS for SMEs, that is positioned pretty close to the European Directives but far left from full IFRS. This is not a surprise as we identified some 15 key differences on recognition and measurement between “full IRS” and IFRS for SMEs, while the EFRAG, in its May 2010 letter to the EC, identified only 6 incompatible points between IFRS for SMEs and the EU Accounting Directives. It is also estimated that the size of the disclosures in the SME standard is only 15% of the disclosure in full IFRS.

In Belgium, despite the adoption of IFRS (referred to as “full IFRS” in this publication) for the consolidated financial statements of several types of companies, Belgian GAAP remains the required accounting framework for stand-alone financial statements, because of the current impact on tax, company laws and SMEs, whereas full IFRS is required for listed companies and banks’ consolidated financial statements, and is authorised (irrevocable choice) for other companies’ consolidated financial statements.

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