The IFRS for SMEs Standard Update is a staff summary of news, events and other information about the IFRS for SMEs Standard and related SME activities. The staff summary has not been reviewed by the International Accounting Standards Board (Board).
- news about SMEIG Q&A 35.1 on transition to the IFRS for SMEs Standard;
- an update on the second Comprehensive Review of the IFRS for SMEs Standard;
- an update on the SME Implementation Group (SMEIG); and
- a reminder of our online resources.
SMEIG Q&A 35.1 on transition to the IFRS for SMEs Standard published
In March 2020, the IFRS Foundation published Q&A 35.1 which was developed by the SMEIG to provide guidance on applying the IFRS for SMEs Standard.
Q&A 35.1 responds to a question on the application of the undue cost or effort exemption when measuring an investment property at fair value on transition to the IFRS for SMEs Standard.
The position set out in the Q&A is that the assessment of whether there is undue cost or effort is based on information about the costs and benefits at the date of transition. Additional cost or effort due to the elapse of time between the date of transition and the date of the first financial statements prepared applying the IFRS for SMEs Standard is not included in the assessment.
In response to feedback on the draft Q&A published in August 2019, the Q&A addresses assets and liabilities for which the IFRS for SMEs Standard permits the application of the undue cost or effort exemption when estimating fair value on transition.
During the second Comprehensive Review of the IFRS for SMEs Standard, the Board will consider the Q&As developed by the SMEIG since the issue of the 2015 amendments to the IFRS for SMEs Standard and decide whether to incorporate the responses in the Standard.
Q&A 35.1 is available here.
Update on the second Comprehensive Review of the IFRS for SMEs Standard
Publication of the Request for Information
In January 2020, the Board marked the end of the first phase of the second Comprehensive Review of the IFRS for SMEs Standard by publishing a Request for Information.
In the Request for Information, the Board invites views on whether and how the IFRS for SMEs Standard should be amended to take account of with IFRS Standards, amendments to IFRS Standards and IFRIC Interpretations in the scope of the review.
The Board aims to get a balanced view from a broad range of stakeholders. Respondents can share their views with the Board by:
- submitting a comment letter;
- using the optional response document to answer some or all of the questions set out in the Request for Information; or
- responding to the Board’s survey, (see below).
Responses to the Request for Information must be received by 27 July 2020.
IFRS for SMEs response survey
The Board plans to publish a survey in April 2020 as part of its outreach on the Request for Information. The Board is interested in obtaining a balanced view from a broad range of stakeholders and has therefore sought to provide a variety of means by which respondents can share their views.
The responses to the survey are expected to provide valuable insight and will help the Board determine whether and how to amend the IFRS for SMEs Standard.
The survey reflects the structure of the Request for Information and is divided into four parts:
- About you contains questions about the respondents and the organisations with which they are associated.
- Part A contains questions on the framework the Board developed for approaching the review.
- Part B contains questions on Sections of the IFRS for SMEs Standard that could be aligned with the IFRS Standards, amendments to IFRS Standards and IFRIC Interpretations in the scope of the review.
- Part C contains questions on topics that are not addressed in the IFRS for SMEs Standard.
Webcast: Introducing the Request for Information
At the beginning of March 2020, the staff provided a webcast to give an overview of the IFRS for SMEs Standard and introduce the Request for Information published in January 2020.
The webcast is the first in a series of web presentations developed to help stakeholders as they prepare to respond to the Request for Information. The second webcast will be made available in April 2020, and will describe the Board’s approach to the second comprehensive review.
Update on the SME Implementation Group
The SMEIG assists the Board in supporting the application of the IFRS for SMEs Standard; more information about the SMEIG, including its terms of reference and operating procedures, is available here.
Call for nominations
The Trustees of the IFRS Foundation published an call for candidates to join the SMEIG. The Trustees invited nominations and applications from all geographical regions and expressed particular interest in candidates who use the financial statements of small and medium-sized entities (investors and providers of finance).
The Trustees will consider applications at their meeting in June 2020.
Online resources
The Board and the SMEIG provide educational materials to support the adoption and implementation of the IFRS for SMEs Standard. These materials are available on the IFRS Foundation’s website and include:
- webcasts, podcasts and webinars; and
- articles and other publications.
The IFRS Foundation has also made available a package of 35 supporting modules to help those applying, reading financial statements prepared applying, or learning about the IFRS for SMEs Standard.
