Second Comprehensive Review of the IFRS for SMEs Standard

The Board met on 26 May 2021 to receive a summary of interviews with SME preparers and discuss whether and how to propose amendments to Sections 2 and 11 of the IFRS for SMEs Standard.

Towards an exposure draft—2018 Conceptual Framework (Agenda Paper 30B)

The Board tentatively decided to propose retaining Section 2 Concepts and Pervasive Principles as part of the IFRS for SMEs Standard. Ten of the 12 Board members present agreed with this decision. One member was absent.

The Board tentatively decided to propose:

1. aligning Section 2 with the 2018 Conceptual Framework and to emphasise that the requirements in the other sections of the IFRS for SMEs Standard take precedence over what Section 2 would otherwise require;
2. undertaking a review for potential inconsistencies between a revised Section 2 and other sections of the IFRS for SMEs Standard when the Board has completed its deliberations on proposed amendments to the IFRS for SMEs Standard; and
3. retaining the concept of ‘undue cost or effort’.

All 12 Board members present agreed with these decisions. One member was absent.

Towards an exposure draft—IFRS 9 Financial Instruments (classification and measurement of financial assets) (Agenda Paper 30C)

The Board tentatively decided to propose an amendment to the IFRS for SMEs Standard, subject to the wording of the amendment, to supplement the examples in Section 11 Basic Financial Instruments with a principle for classifying financial assets based on their contractual cash flow characteristics.

All 12 Board members present agreed with this decision. One member was absent.