What is the guideline for attorneys regarding the use of IFRS for SMEs as opposed to full IFRS
Attorneys that use trust accounts are deemed to hold assets in a fiduciary capacity. Furthermore, if the trust accounts hold in excess of R5mil in their trusts acoounts (fiduciary capacity) then they should use full IFRS and not IFRS for SME's.
By holding assets in a fiduciary capacity, the attorney becomes accountability to the public. Refer IFRS for SME para 1.3 which deeems that an entity has public interest if it holds assets in a fiduciary capacity. This then has the effect of disallowing IFRS for SMEs in favour of full IFRS. The R5 million threshhold is from the Companies Act which requires such entities to be audited.