Task 2 In July 2009, IASB released IFRS for Small and Medium-sized Entities (SMEs) which can be designated as the most important event of 2009 in IFRS. The standard for SME is a result of a five-year development process with extensive consultation of SMEs worldwide and is intended to be used by more than 95 per cent of all companies. This standard provides an alternative framework that can be applied by eligible entities in place of the full set of International Financial Reporting Standards.

* Discuss the challenges faced by SMEs in applying the IFRS for SMEs and the importance of IFRS application for SMEs with suitable examples.