Recently, I had a conversation with a fellow accountant and it struck me that he was ignorant about this launch of the three tier financial reporting framework in Zambia. I think this is common nowadays as more business people are glued to social networks like facebook and political news.
The importance of understanding the purpose and scope of this financial reporting standard for micro and small enterprises (MSEs) is that it will give you a clear guidance on the accounting treatments suitable for MSEs doing business in Zambia.
Not too long ago, I wrote this post titled Why SMEs Need Standards. This was just a few months after ZICA announced that it was in a process of adopting the IFRS for SMEs. For more than half of us, the article might have been seen as a source with little or no importance. However, in the context of the new global economy, information more than ever is a critical resource and that we should be very active in seeking information.
Interestingly, according to the information I found on ZICA website, the effective date for full compliance with IFRS for SMEs and the financial reporting standard for MSEs is 1st January 2012.The period from 1st January 2011 to 31st December 2011 is to facilitate transitional arrangements for preparing financial statements. Yet, only few if any micro and small business owners know something about the financial reporting standard for MSEs.
One notable point I got from the standard is that, if your business is out side the scope of the financial reporting standard for MSEs and you choose to use the standard, your financial statements shall not be described as resulting in fair presentation in accordance with the Zambian financial reporting frameworks.
A learned colleague of mine once taught me that ‘ignorance has no defense’ but the good part is that, this financial reporting standard for MSEs is available for download on the ZICA website. Download your copy today.
If you found this information helpful, don't hesitate to leave your comment.
If you found this information helpful, don't hesitate to leave your comment.
About the Author:
Fixed Asset Consultant at Prosperity Agencies Limited with over 10 years practical experience in physical verification, bar-coding of assets and fixed asset software implementation +260 211 239859
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