QUESTION 2 (SECTION B) Rationale that two sets of IFRS are developed and published to promote the use of these IFRS in general purpose financial statements and other financial information. General purpose financial statements meet the common data needs of a wide range of users. It turns out that having a different system of national accounts is costly for businesses and investors. Companies should keep a copy of the accounting system and investors will be careful before purchasing shares in company accounts they do not understand. This problem arises because accounting guidelines have developed over centuries, in which there are different needs from each other, from the economy and from the means of regulation. Apart from this, the reason for these two sets of IFRS is that IFRS will force all countries to use the accounting standards. correct, transparent, true and fair accounting and easy to understand in all countries because it uses the same guidelines and rules. Full IFRS allows large companies to monitor their operations with the guidelines, but small companies should use IFRS for SMEs because SMEs are easy to understand and the report must be submitted three years once. Differences between accounting systems do not effectively transfer information which will negatively impact resource allocation, capital market efficiency and tax adjustments. International Financial Reporting Standards issued by the International Accounting Standards Board, committed to developing a set of high-quality standards, which require transparent and globally comparable information in general purpose financial statements. Although the principles of accounting, accrual accounting and the going concern assumption are widely accepted, the use of these principles...... middle of paper ...... at subject of accounting policy options in full IFRS that have been removed from the IFRS for SMEs, or it relates to accounting principles and measures in full IFRS that have remained modified by the simplifications of IFRS for SMEs and which are not considered suitable based on consumer needs or cost-benefit concerns. For example, some information provided in full IFRS is more relevant to investment decisions in public capital markets from transactions and other events and conditions faced by typical SMEs. Assets are resources controlled by an entity as a result of past events from which future economic benefits will flow. flow to the entity. Future economic benefits are the benefits that can arise from the continued use of the asset. The requirements of IFRS for SMEs are the same as those of full IFRS. The factor is property rights and physical substances.