Compilation and Review Reports on Financial Statements Prepared in Accordance with International Financial Reporting Standard for Small and Medium-sized Entities
AICPA | July 2, 2010
Below are illustrative accountant's compilation and review reports on financial statements issued in conformity with IFRS for Small and Medium-sized Entities. For more information, see Interpretation No. 30 of AR Section 100.
Accountant's Compilation Report
The standard accountant's compilation report is appropriate for a compilation of financial statements prepared in accordance with International Financial Reporting Standard for Small and Medium-Sized Entities:
I (we) have compiled the accompanying balance sheets of XYZ Company as of December 31, 20X1 and 20X0, and the related statements of income, comprehensive income, changes in equity, and cash flows for the years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements information that is the representation of management (owners). I (we) have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.
The standard compilation report is unchanged because the report does not disclose the accounting framework. However, to avoid confusion as to the financial reporting framework used in preparing the financial statements, the accountant may determine to add the following emphasis of matter paragraph as the third paragraph of the accountant's compilation report:
As disclosed in note X, the accompanying financial statements were prepared in accordance with International Financial Reporting Standard for Small and Medium-Sized Entities as issued by the International Accounting Standards Board.
Accountant's Review Report
Because the applicable financial reporting framework is disclosed in the accountant's standard review report, the following form of standard report is appropriate for a review of financial statements prepared in accordance with International Financial Reporting Standard for Small and Medium-Sized Entities:
I (we) have reviewed the accompanying balance sheets of XYZ Company as of December 31, 20X1 and 20X0, and the related statements of income, comprehensive income, changes in equity, and cash flows for the years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management (owners) of XYZ Company.
A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I (we) do not express such an opinion.
Based on my (our) reviews, I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with International Financial Reporting Standard for Small and Medium-Sized Entities as issued by the International Accounting Standards Board.
