Tuesday 26 May 2015
When the IFRS for SMEs was issued, the IASB stated that it planned to undertake an initial comprehensive review of the IFRS for SMEs after two years of use by SMEs to consider whether there was a need for any amendments.
Specifically, the IASB said it would consider whether to amend the IFRS for SMEs to address any implementation issues identified and also whether to consider any changes made to IFRS (sometimes referred to as ‘full IFRS’ when compared to the IFRS for SMEs) since the IFRS for SMEs was published.
The IASB decided to commence its initial comprehensive review in 2012, with support from the SME Implementation Group (SMEIG), based on its view that sufficient jurisdictions had adopted the IFRS for SMEs by 2010 to provide broad insight into the implementation experience.
After consulting widely with constituents, the IASB concluded that the IFRS for SMEs is working well in practice. However, some areas were identified where targeted improvements could be made. Consequently, after considering the feedback it received, and taking into account the fact that the IFRS for SMEs is still a relatively new Standard, the IASB has made limited amendments to the IFRS for SMEs.
The most significant amendments that relate to transactions commonly encountered by SMEs are:
Most of the other amendments clarify existing requirements or add supporting guidance, rather than change the underlying requirements in the IFRS for SMEs. Consequently, for most SMEs and users of their financial statements, the amendments are expected to improve understanding of the existing requirements, without having a significant effect on an SME’s financial reporting practices and financial statements.
The amendments are effective for annual periods beginning on or after 1 January 2017. Earlier application is permitted.
IASB discuss procedures surrounding future reviews of the IFRS for SMEs
IASB finalises its technical discussions on the amendments to the IFRS for SMEs
SME Implementation Group report now available
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