EFRAG Draft Comment Letter on the SMEIG Q&As

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on the SME Implementation Group's five questions and answer documents (Q&A) on draft guidance related to the implementation of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) published last week.

EFRAG recommends not issuing any of the Q&As since EFRAG is concerned that the SMEIG is not focusing on a limited number of pervasive issues when issuing Q&As, as specified in its terms of reference and operating procedures, but is creating rules in a principle-oriented environment.

The draft comment letter notes that four of the Q&As consider issues on which the requirements of the IFRS for SMEs seem clear, and the answer to the question raised in the last draft Q&A always seems to depend on the SME's specific circumstances and management's professional judgement.