The Council on the recommendation of the Accounting Standards Board (ASB) has approved the amendments to the Revised Accounting and Financial Reporting Standard for Small-sized Entities (Revised AFRS for SSEs), in its 299^th meeting held on July 3, 2018.

 The amendments to Revised AFRS for SSEs are enclosed to this circular. These amendments have been made to align the accounting treatment and presentation of revaluation surplus on property, plant and equipment prescribed under the Revised AFRS for SSEs with the Companies Act 2017 and other financial reporting standards (i.e. IFRS and IFRS for SMEs).

The amendments to Revised AFRS for SSEs are applicable to the companies preparing financial statements under the Companies Act 2017, for the period ended on or after June 30, 2018. Consequent to the amendments, any change in the company’s accounting policy for revaluation surplus of property, plant and equipment shall be accounted for and disclosed in accordance with the requirements of the Revised AFRS for SSEs.

Members are advised to take note of the above.

Circular 7 – Amendments to Revised Accounting and Financial Reporting Standard for Small-sized Entities 

Amendments to Revised Accounting and Financial Reporting Standard for Small-sized Entities