ACCA welcomes the opportunity to provide views in response to the IASB’s exposure draft (ED) proposing amendments to the IFRS for SMEs Accounting Standard (Standard). We hope that our comments, which include feedback from our Global Forum for Corporate Reporting, are a helpful contribution to this process.

Allowing eligible SMEs to be exempted from producing consolidated financial statements may reduce their reporting burden where such information is not demanded by users of their financial statements. Importantly, the criteria for eligible SMEs are specified and this exception permits but does not prohibit eligible SMEs from presenting consolidated financial statements if management determines that presenting consolidated financial statements is necessary to provide useful financial information about the SME and its subsidiaries as a group to existing and potential investors, lenders and other creditors. We believe the proposed consolidation exception is a reasonable accounting policy choice for eligible SMEs.

We also support aligning the effective dates so that SMEs may apply the proposed amendment at the same time as they apply the third edition of the Standard.

To read the detailed response, please download the document found on this page.