MORE ATTENTION should be given to small and medium enterprises while discussing implementation of accounting standards, as these businesses constitute the larger portion in the economic sectors in the Arab countries, the Chairman of Arab Society of Certified Accountants (ASCA), has urged.
While inaugurating a training seminar on the International Financial Reporting Standards for Small and Medium-Sized Enterprises (IFRS SMEs) in Abu Dhabi, Dr Talal Abu-Ghazaleh said SMEs employ around 80% of the labour market compared to other big companies, produce 80% of the GDP and comprises 99% of the registered companies in any country.
He added that international accounting standards need to be developed in the knowledge age, as the focus should be directed to the brand as a wealth. He cited examples from the real world of beverage industry where 97% of its value comes from its trade name while its true value, according to international accounting standards, is only 3%.
The course hosted Paul Pacter, the Director of Standards for Small and Medium-sized Entities (SMEs) at the International Accounting Standards Board (IASB) and Michael Wells, the Director of IFRS Education Initiative.