IFRS Foundation Consults on Q&A on Application of Its SMEs Standard
IFRS Foundation is requesting comments on its draft questions and answers (Q&A) on the application of the IFRS for SMEs [small and medium-sized entities] Standard. The draft Q&A respond to a question from stakeholders about the application of the undue cost or effort exemption for investment property on the date of transition to the IFRS for SMEs Standard. The draft Q&A concludes that additional cost or effort due to the elapse of time between the date of transition and the date of preparing the first IFRS for SMEs financial statements is not considered. The consultation is open for comment until October 07, 2019.
The draft Q&A has been developed by the SME Implementation Group (SMEIG), which assists IASB in supporting the application of the IFRS for SMEs Standard. The Q&A provide non-mandatory and timely guidance on specific accounting questions about applying the IFRS for SMEs Standard. The group also advises IASB on amendments to the IFRS for SMEs Standard. During the 2019 Comprehensive Review of the IFRS for SMEs Standard, IASB will consider the Q&A developed since the issue of the 2015 amendments to the IFRS for SMEs Standard and determine whether to incorporate the responses in the IFRS for SMEs Standard. The draft Q&A is the second to be published since the initial comprehensive review of the IFRS for SMEs Standard, completed in May 2015.
The IFRS for SMEs is a standard that is tailored for small companies. It focuses on the information needs of lenders, creditors, and other users of SME financial statements who are interested primarily in information about cash flows, liquidity, and solvency. The standard takes into account the costs to SMEs and the capabilities of SMEs to prepare financial information. The IFRS for SMEs Standard includes an option for entities to apply the recognition and measurement requirements of IAS 39 on financial instruments. For accounting periods beginning before January 01, 2018, an SME shall apply the version of IAS 39 that is in effect at its reporting date, by reference to the full IFRS publication titled IFRS® Standards Consolidated without early application (Blue Book). For accounting periods beginning on or after January 01, 2018, an SME shall apply the version of IAS 39 that applied immediately prior to the effective date of IFRS 9 Financial Instruments.
Comment Due Date: October 07, 2019
Keywords: International, Accounting, Q&A, IFRS 9, SME, IFRS for SMEs, IAS 39, IASB, IFRS
Featured Experts
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Anna Krayn
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management
Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
Related Articles
BCBS Amends Guidelines on Sound Management of AML/CFT Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies Finalize Amendments to Swap Margin Rule
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA Letter Sets Expectations on Approach to Managing Climate Risks
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS Publishes List of Internationally Active Insurance Groups
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC Launches Consultation on Review of Solvency II Directive
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB Consults on Supervisory Approach to Consolidation in Banking
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS on Package for 2020 Data Collection on ICS and Aggregation Method
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
