This update was first published in the November 2011 UK edition of Accounting and Business magazine
The SME Implementation Group of the IFRS Foundation has issued for comment five draft Q&As relating to IFRS for SMEs. The drafts address the following:
- The application of IFRS for SMEs to periods that end before the application date of the standard.
- Interpretation of the terms ‘undue cost’ and ‘impracticable’.
- The circumstances where a jurisdiction permits all entities meeting the definition of an SME to apply IFRS for SMEs, but requires reference to full IFRS in circumstances where IFRS for SMEs does not address a particular transaction, event or condition.
- Departure from a principle in IFRS for SMEs.
- Prescription of the format of financial statements by local regulation.
Yvonne Lang, director, and Kern Roberts, associate director, Smith & Williamson