IASB Consults on IFRS for Small Business
The International Accounting Standards Board (IASB) is consulting on possible amendments to International Financial Reporting Standards (IFRS) for SMEs, ahead of a comprehensive review next year.
The SME Implementation Group (SMEIG) has published two draft questions and answers Q&As. These cover whether an entity may choose to apply the recognition and measurement provisions of IFRS 9, and whether the recycling of cumulative exchange differences on disposal of a subsidiary is prohibited. The drafts are open for comment until 31 January 2012.
When the IASB issued the IFRS for SMEs in 2009, it announced its intention to undertake a post-implementation review of the standard after a broad range of entities had been applying the IFRS for SMEs for two years. This is now scheduled to begin in 2012 and is expected to include a request for public comments on possible amendments.
The review will also consider all Q&As for possible incorporation into the revised IFRS for SMEs. For that reason, the SMEIG does not expect that it will issue many, if any, additional Q&As before the review starts. Once this review is concluded, the IASB plans to consider amendments to the IFRS for SMEs approximately once every three years.