Compiling Annual Financial Statements: A Practical Guide for the Compiler
Compiling annual financial statements is not just about moving numbers from a trial balance into a report. You need to understand the business, use the correct accounting framework, check that the figures make sense, look for missing information and make sure the right disclosures are included. Management remains responsible for the financial statements, but as the compiler, you still need to do the job properly.
IFRS for SMEs vs ISRS 4410: Know the Difference
When preparing a compilation report for an SME, it is important to understand that IFRS for SMEs and ISRS 4410 do not compete with each other. They serve different purposes. IFRS for SMEs is the framework used to prepare the financial statements, which means it determines how the numbers and disclosures are presented. ISRS 4410 is the standard that guides the practitioner on how to perform the compilation and how to write the report. In simple terms, IFRS for SMEs explains what the financial statements must look like, while ISRS 4410 explains how the practitioner does the work and reports on it.