The International Accounting Standards Board (IASB) is asking for views on its approach to updating the IFRS for SMEs Standard—the simplified accounting standard for small and medium-sized entities.
The IFRS for SMEs Standard is required or permitted in more than 80 countries and is used by millions of companies.
The objective of the Request for Information is to seek views on whether and how aligning the IFRS for SMEs Standard with the full IFRS Standards could better serve users of financial statements prepared applying the IFRS for SMEs Standard without causing undue cost and effort for SMEs.
The Request for Information asks for views on different approaches to updating the IFRS for SMEs Standard, as well as views on how the Standard could be aligned with newer IFRS Standards, such as IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases.
The first comprehensive review of the IFRS for SMEs Standard commenced in 2012; an amended Standard was issued in 2015 and became effective on 1 January 2017. Based on feedback from the first review, the IASB expressed support for a comprehensive review of the IFRS for SMEs Standard commencing no sooner than two years after the effective date of the amendments to the IFRS for SMEs Standard from a previous comprehensive review.
This Request for Information is the first step by the IASB in its second comprehensive review of the IFRS for SMEs Standard.
Invitation to comment
The Request for Information is open for comment until 30 September 2020, a new deadline because of the covid-19 pandemic; previously it was 30 June 2020.
You may provide your comments via email to us at firstname.lastname@example.org.