What are some of the key challenges that a private company in the United States would face in using IFRS for SMEs?
Some key challenges that may be present in choosing to use IFRS for SMEs include understanding the differences between IFRS for SMEs and U.S. GAAP; the willingness of financial statement users to accept financial statements prepared under IFRS for SMEs; working with and accepting a more principles-based set of accounting standards compared to the more rules-based U.S. GAAP; the impact on taxes and tax planning strategies; and the impact on financial reporting metrics.
