IFRS for SMEs has been referred to as IFRS lite. One of the differences between full IFRS

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IFRS for SMEs has been referred to as “IFRS lite.’ One of the differences between full IFRS and IFRS for SMEs is that full IFRS allows for judgment in making choices about proper accounting, whereas IFRS for SMEs is much more rigid.

a. Do you think there should be a separate set of international accounting standards for small and medium-sized entities? Why or why not?

b. How does your answer relate to accounting standards in the United States? That is, should there be two sets of GAAP standards—one for large (public) and another for smaller

(private) companies?

c. Can you identify one area in the United States where GAAP calls for a different (lesser) treatment of accounting standards for nonpublic companies?

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