The common complaint among users of the financial statements of private entities is
that they have no real need for the large amounts of information inside full-IFRS-compliant
financial statements.Users are in fact more concerned with liquidity and solvency issues.
Moreover, preparing full-IFRS financial statements has proved to be an expensive and
painful burden for these private entities. The IFRS for SMEs seeks to strike a balance
between meeting user needs while balancing costs and benefits from a preparer's perspective.
Based on the needs and capabilities of SMEs, the IFRS for SMEs was modified from
the full version.