IFRS for SMEs second comprehensive review update

The IASB has issued a staff paper that deals with a project plan for the second phase of the review, this paper deals with providing responses obtained from stakeholders who have provided feedback on the alignment approach and principles in the Request for information.

The Request for Information was published by the Board in January 2020, with the objective to seek views on whether and how the Board should amend the IFRS for SMEs Standard. The Request for Information was open for comments until the end of October 2020.

The paper further deals with feedback on the strategic and general questions in the Request for Information, together with recommendations from the SMEIG.

Respondents did have mixed views on the alignment approach, the overall item which was looked at when considering alignment was the principles that are of relevance to SMEs, these are simplicity and faithful representation. For more complex standards such as IFRS 16 and IFRS 9, there was concern expressed regarding the cost of aligning these standards for entities that apply IFRS for SMEs.

The IASB also expects to propose amendments to the IFRS for SMEs Standard by publishing an Exposure Draft, however, this is likely to only be published in the second half of 2022.

Appendix A of this paper deals with staff thoughts and recommendations by the SMEIG on the topics discussed in the Request for Information.

Please click on the following link for access to the full paper.

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AP30 2nd comprehensive review of the IFRS for SME's standard
AP30 2nd comprehensive review of the IFRS for SME's standard