The idea of creating simplified versions of IAS for use by small and medium-sized enterprises (SMEs) and companies in emerging markets has been tabled previously, most recently at an IASC convention in Brussels last month entitled, "A single market in European accounting."

Karel van Hulle of the European Union delegation said, "SMEs and emerging market companies cannot be expected to implement IAS because they are standards for the capital markets." Per Gunslev, a member of the Nordic Federation delegation, said if IASs were supplemented with a simplified set of standards they would provide developing countries without national standards a ready made set suitable for all levels of enterprise.

However, there was confusion over how to approach simplifying standards. The German delegation suggested that there should be a distinction between listed and private companies. While Malaysia said it was more important to address issues of education and infrastructure development in emerging markets.

Although IASC secretary general Bryan Carsberg included a recommendation for simplified standards in the "legacy document" that will be given to the new IASC, the decision was by no means unanimously approved by board members.

IASC chairman Tom Jones was apprehensive about the decision, saying that many SMEs and emerging market companies have portfolios of shares and issue debt securities, as well as taking part in other complex transactions. He said simplified standards might provide a loophole for these companies. The U.S. Financial Accounting Standards Board, the Swiss delegation and the analysts were among those that were not convinced by the argument for simplified standards.

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