(MENAFN - Muscat Daily) The adoption of International Financial Reporting Standards (IFRS) would simply financial reporting and auditing processes and reduce compliance cost for small and medium businesses (SMEs).
This was highlighted at a seminar on 'IFRS Update and IFRS for SMEs' organised by Deloitte Middle East on Sunday. The seminar was inaugurated by H E Sheikh Abdullah Salem al Salmi, executive president of the Capital Market Authority (CMA).
Speaking at the opening ceremony, H E Salmi said, ''Transparent financial reporting is the backbone of capital markets, where investors rely on numbers in the published financial statements. It is imperative that these financial statements are prepared based on the IFRS, as mandated by the regulatory framework in Oman. Selection of prudent accounting policies and their consistent use are warranted.''
Speaking to reporters later, H E Salmi said once adopted IFRS would reduce the amount of effort SMEs put into preparing detailed accounts and also cut the cost of producing accounts.
''It would be prudent to allow SMEs to produce a truncated version of their detailed accounts. It would also make it easier for auditors. I think it is going to happen soon as we are in the process of getting everybody aligned on developments over the issue,'' H E Salmi added.
Alfred Strolla, managing partner of Deloitte Oman, said the adoption of IFRS would simplify financial reporting for emerging small businesses and lower their compliance costs.
Emphasising the need for development of SMEs, Strolla, said, ''We call upon the business community to supplement government initiatives and support SMEs. We believe that this will promote entrepreneurship amongst Omani youth and help generate further employment opportunities for national manpower.''
The seminar included a special session on SMEs. Technical sessions were attended by more than 150 participants, including chief financial officers, finance managers and other finance professionals representing different industrial sectors in Oman.
Also present at the conference were H E Saud bin Nassir al Shukaili, secretary general for taxation at the Ministry of Finance, H E Hamood Sangour al Zadjali, executive president of Central Bank of Oman, and H E Ahmed Saleh al Marhoon, director general of Muscat Securities Market