QUESTION 1 In 2009 the IASB published the IFRS for Small and Medium enterprises (IFRS for SMEs) which is based on the principles in full IFRS, but tailored to the needs of small companies. Required:

1.1 Discuss whether it was necessary to develop a separate Standard SMEs (7 marks)

1.2 Discuss the purpose of IFRS for SMEs and type of entity which it should be apply. Your answer should consider the issues surrounding the development of the IFRS for SMEs (7 marks)

1.3 Explain the key recognition and measurement simplifications under IFRS for SMEs compared to full IFRS ( 6Marks)

1.4 Explain how items not dealt with by the IFRS for SMEs should be treated (5 Marks)

Total 25 marks