SME Implementation: Q&A Guidance
The SME Implementation Group, responsible for assisting the International Accounting Standards Board (IASB) on matters related to the implementation of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), published today its first question and answer (Q&A) guidance on the IFRS for SMEs. The guidance is set out in Q&A 2011/01 Use of the IFRS for SMEs in a Parent’s Separate Financial Statements.
Developing non-mandatory and timely guidance on specific accounting questions that are being raised by those implementing the IFRS for SMEs is one of the two main responsibilities of the SME Implementation Group. The other is to make recommendations to the IASB regarding amendments to the IFRS for SMEs. Those recommendations will be considered when the IFRS for SMEs is updated, approximately every three years.
Q&A 2011/01 addresses whether a parent entity that itself does not have public accountability may present its separate financial statements in accordance with the IFRS for SMEs if it is part of a group that is required (or elects) to present consolidated financial statements in accordance with full IFRSs.
All final Q&As and draft Q&As can be accessed here.