Impact of the New APES 205 
 
The Institute’s Business Practice Guide (BPG) was prepared using the requirements of APS 1 Conformity with Accounting Standards and UIG Consensus Views (see section 1 'Purpose and Scope'). 
 
APS 1 has now been withdrawn and replaced by APES 205 Conformity with Accounting Standards, which is effective from 1 July 2008. For special purpose reports, it requires a statement of significant accounting policies rather than a statement on the extent to which accounting standards have been applied. Note 1 in the specimen accounts provided in the BPG satisfies the requirements of APES 205, but the reference to UIG Interpretations should be removed. The BPG will be reviewed in due course. 
 
For further details on the applicability of APES 205, go to our Q&A at in ANT Issue 20 2008. 
 
Release of the Business Practice Guide 
 
The Institute has now released the updated AIFRS version of its non-mandatory guidance for small business financial reporting. This ‘plain English’ manual, first issued in September 2004 provides non-mandatory financial reporting guidance for substantial privately held businesses, such as trusts, partnerships and non reporting proprietary companies. 
 
The purpose of the Guide is to assist smaller businesses to produce financial statements that meet the needs of their users without being as complex as those for listed companies. The guide has now been updated for the changes imposed by the transition to international financial reporting standards. 
 
The guide has been updated for the changes imposed by the transition to international financial reporting standards. Further revision are expected in response to the IASB'S small and medium-sized enterprises project currently being progressed internationally. Feedback is always welcome. Please direct your comments to: techsubmissions@charteredaccountants.com.au. 
 
The Background to the project is described in a Charter Article published in August 2004. 
 
Business Practice Guide: 
Download the complete version (PDF, 0.99MB) 
 
In June 2004, the IASB published a discussion paper on Accounting Standards for small and medium sized entities. The Institute is actively monitoring this project and has been making submissions as the project has evolved. 
 
In early 2005, the International Accounting Standards Board (IASB) has published a staff questionnaire on possible modifications of the recognition and measurement principles in International Financial Reporting Standards (IFRSs) for use in IASB standards for small and medium-sized entities (SMEs). SMEs are defined for questionnaire purposes as entities that (1) do not have public accountability and (2) publish general-purpose financial statements for external users. 
 
A copy of the Institute's Submission on the IASB SME Questionnaire can be downloaded from here. 
 
The development of the Business Practice Guide for Financial Statements for Non-Reporting Entities was supported by funding from the Professional Standards Council as part of the Star Initiative Program.