I.

Qualitative Characteristics

Section 1 of PFRS for SME states that:

SMEs are entities that:
(a) Do not have public accountantability
(b) Publish general purpose FS for external users.

PFRS for SMEs Full PFRS

Composed of: Composed of:
Understandability FUNDAMENTAL
Relevance Relevance
Materiality (Predictive Value and
Reliability Confirmatory Value) (Materiality
is a subcharacter)
Substance over form
Qualitative Prudence Faithful
Characteristics Completeness representation
(Free from error, Completeness,
Comparability and Neutrality)
Timeliness ENHANCING
Balance between Verifiability
benefit and cost Comparability
Understandability
Timeliness

II. Elements of Finacial.Statemnts

III. General Features

Full PFRS and PFRS for SME's have the same provisions on the general features in
thr preparation of financial statements.

PFRS for SME's Full PFRS

-Fair Presentation Same provisions on the general features
-Going Concern of PFRS for SME's
-Accrual Basis
- Materiality and aggregation
- Offsetting
-Frequency of reporting
-Comparative information
-Consistency of presenatation