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.