Dear Elena,
I understand that accounting standards for smes are still in the drawing boards after asking for comments and suggestions from different sectors. I am a practising accountant in the Philippines.  My concern is on the issue of not-for-profit organization, which in the Philippine context are also known as non-government organizations (NGO’s). These NGO’s are generally funded by grants both from domestic and international funding agencies which have their own reportorial requirements aside from statutory requirements of state regulatory bodies. To satisfy both “users” ,  the  NGO will need to prepare both  special purpose and general purpose financial statements.  The first will adopt  specific formats required by the funder under “fund accounting”, while the second will cater to the finanial reporting standards which until now are  not yet final.  In both reports,  an independent auditor’s report will be atrtached to the financial statements. 
Am I correct?  Will the first report be materially different from the second in terms of  wordings in the audit report?  In the financial aspect,  will the second report  cater to the use of accrual system since the first adopts the fund accounting concept?
Sincerely yours,

I was about to start a topic to discuss IFRS for SMEs! Thanks for giving it a

I am keen learn about IFRS for SMEs and its impact on global SMEs.

I was going through a document from IASB on IFRS for SMEs and there I read that
a few accounting software providers (actually 4-5) are working on making their
software compliant with IFRS for SMEs.

As a full disclosure, I must inform that I am associated with a new generation
business accounting software known as P2P Accounts which we would very much
like to be compliant with IFRS for SMEs.

I have been greatly benefited by the discussions on this list and hope to
contribute for the betterment of SMEs in particular through our contribution to
the community through P2P Accounts.

Thanks to Simone, the moderator, for initiating this discussion forum.

Best Regards,


Dear ANN,

The NGO’s being not profit organizations I don’t think their financial statements should be as required by the IFRS general or for SMEs they should be as required by the funding agencies, domestic or international consequently if even 2 different models are required the content of both in figures sould be the same, and the auditor in that case can issue one report for both models.

I don’t think that IFRS requirements can be applied on non-profit organizations easily even those for SMEs and consequently regulatory bodies should not require applying then for such NGO’s especially that a large number of IASs & IFRSs are NA

I hope that I have been of some help





HI Ann,

I think for NGO, the Formats and wording are all based on the Funder and the terms and conditions. Few things may come due to the taxation laws of the country specific in terms of maintaining the books say project basis or based on tax exemption basis etc.
May be one of the Acc. Standard comes with the a guidance note kinna  a stuff for NGO in future