In the case of a trust company, the fact that it holds assets in a fiduciary capacity for a broad group of outsiders is considered as one of its primary business. Therefore, it would not qualify to apply IFRS for SMEs. Trust companies typically hold assets on behalf of a large number of beneficiaries and therefore, they are required to follow the full IFRS accounting standards.
It is worth noting that IFRS for SMEs is an optional framework, and a trust company can choose to continue applying full IFRS if it wishes to do so. However, the company should be aware that this may result in increased complexity and cost of financial reporting.
IFRS 16 and IFRS 9 are two standards that are mandatory for all entities regardless of their size. But implementation of these standards may be more burdensome for a small or medium-sized entities, and the company may need to take additional measures such as hiring additional staff or investing in new software to comply with the requirements.
