The need for a universal method of accounting measurement, classification, recognition and presentation of financial information is what prompted the International Accounting Standards Board (IASB) to issue the International Financial Reporting Standards, populary known as IFRS. Over 300 countries, including EUs and the United States, have adopted the Standards, or are in the process of doing so. Nigeria adopted the Standards in 2010.
IASB has also issued a set of Standards for Small and Medium Enterprises (SMEs) under the International Financial Reporting Standards (IFRS) for SME. IFRS For SME are not a new set of standards—they are simplifications of existing IFRSs to meet the accounting and reporting needs of SMEs.
The International Financial Reporting Standards (IFRS) are more about policies than anything else. And when it comes to applying these policies, expert knowledge of accounting is a mandatory requirement. It therefore means that small businesses will have to always rely on the services of experts to translate IFRS policies into accounting entries. This can be a very big impediment to small business owners who may not find it easy to patronize such a service because of cost. This book has been written to remove that impediment.
IFRS Accounting Manual for Small Businesses is a working manual on IFRS accounting for small businesses. The book literally translates IFRS accounting policies into accounting entries in double-entry format. The author does not assume prior knowledge of accounting, as he takes you through the fundamental principles and elements of accounting before stepping into IFRS. The book is laced with several practical examples on application of IFRS to various business transactions. These include Value-Added Tax (VAT), accounting for Salary and Wages, various forms of income and expense measurements and recognitions. The book is meant to serve as a learning and a working manual for non-accountants and enthusiasts, especially owners of small businesses. Students and new accountants may also find it useful as a companion text and a reference guide.
A special IFRS-compliant accounting software for small businesses, ABC Financial and Business Toolkit, has been released by the publisher of this book, Spectra Business Intelligence Limited, as a companion financial and business tool that implements some of the policies in this book.
Mr. Kabir Mashir, former Acting Chairman, Federal Inland Revenue Service (FIRS), wrote the foreword for this book when he was still in office.