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
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