Comparison of Major Highlights for PFRS for Small Entities vs.
PFRS for Small and Medium-Sized Enterprises vs. Full PFRS
Aspect PFRS for Small Entities
Disclosure The statement of financial
Requirements position, statement of
comprehensive income, statement
of changes in equity, and
statement of cash flows are
among the important disclosures
that are still required but still has
fewer disclosure obligations than
full PFRS.
Financial The PFRS for Small Entities
Statements Standard specifies a specific
Format format, which includes a
simplified statement of financial
position and a statement of
comprehensive income.
Depreciation For all depreciable assets, the
straight-line depreciation method
must be applied.
PFRS for Small and Medium
Entities
Similar to PFRS for Small
Entities, but with a few extra
disclosure requirements, like
segment reporting, disclosures of
the fair value hierarchy, and the
disclosure of the assumptions
used in evaluating specific assets
and liabilities.
Similar to PFRS for Small
Entities, but with greater
presentational flexibility.
Entities have access to the
straight-line technique, the
reducing balance method, and
the units of production method
Full PFRS
Additional disclosures such as
related party transactions,
contingencies, and significant
accounting policies are required,
in addition to more thorough
financial statements and notes to
the financial statements than
those of PFRS for Small and
Medium Entities or PFRS for
Small Entities.
Although the full PFRS Standard
does not specify a format, it
generally adheres to a standard
format with more complexity
and detail than either the PFRS
for Small Entities or the PFRS
for Small and Medium Entities.
Entities can choose from several
depreciation methods
 for depreciation.

Goodwill A maximum ten-year Despite not needing to be Despite not needing to be

amortization period must be used amortized, goodwill must amortized, goodwill must
for goodwill. undergo an annual impairment undergo an annual impairment
test. test.

Cash Flow Optional Required Required

Statement

Income There is no specific guidance on Deferred tax assets and liabilities Specific guidance on accounting
Taxation how to account for income taxes. may be recognized, but there is for income taxes
no precise guidance on how to
measure income taxes.

Impairment Impairment testing is not required Impairment testing is required Impairment testing is required
for some assets for all assets for all assets

Intangible Only limited intangible assets are All identifiable intangible assets All identifiable intangible assets
Assets recognized are recognized are recognized

Employee Limited to basic employee benefit Includes more complex Includes all employee benefit
Benefits plans employee benefit plans plans

Government Government grants are simple to Full recognition of government Full recognition of government
Grants recognize grants grants

Segment No specific guidance on segment Disclosures are required for Disclosures are required for
Reporting reporting entities that have operating entities that have reportable
segments segments

Consolidation No specific guidance on Consolidation of subsidiaries Consolidation of subsidiaries

consolidation under an entity's control is under an entity's control is

Audit Optional audit for organizations
Requirements that are not mandated by law or
regulation to undergo an audit
required.
Optional audit for organizations
that are not mandated by law or
regulation to undergo an audit
required.
Required audit for entities that
have public accountability, and
may be required for entities that
do not have public accountability
depending on national or local
laws and regulations