SME Implementation Group Publishes Two Final Q&As

The IASB's SME Implementation Group (SMEIG) has published two final questions and answers (Q&As) on the IFRS for SMEs. Q&As are non-mandatory guidance.

Q&A 2012/03 Fallback to IFRS 9 'Financial Instruments' states that the option of applying the recognition and measurement provisions of IAS 39 instead of Sections 11 and 12 of the IFRS for SMEs refers to IAS 39 exclusively. SMEs are not permitted to apply IFRS 9.

Q&A 2012/04 Recycling of cumulative exchange differences on disposal of a subsidiary states that the cumulative exchange differences that arise on
translation into a presentation currency are prohibited from being recognised in profit or loss on disposal of the subsidiary.

These two Q&As are expected to be the last Q&As published by the SMEIG for the time being as the IASB has committed to undertaking a post-implementation review of the standard and first steps for this process are already being prepared.