SME Implementation Group publishes two final Q&As

27 April 2012

The SME Implementation Group (SMEIG) today published two more question and answer documents (Q&As) on the IFRS for SMEs:

• Q&A 2012/03 Fallback to IFRS 9 Financial Instruments
• Q&A 2012/04 Recycling of cumulative exchange differences on disposal of a subsidiary

These two final Q&As reflect the input that the SMEIG received on the publication of two draft Q&As in November 2011 on these topics (the comment period closed in January 2012).

Although Q&As are approved by the IASB they are issued as informal guidance and not mandatory standards. Consequently, they are published in the name of the SMEIG rather than the IASB. The non-mandatory Q&As are intended to help those who use the IFRS for SMEs to think about specific accounting questions. They are not intended to modify in any way the application of full IFRSs.

Review of the IFRS for SMEs

When the IASB issued the IFRS for SMEs in 2009, it made a commitment to undertake a post-implementation review of the standard. The first step in that review will be publication of an Invitation to Comment on whether there is a need to amend the IFRS for SMEs:

• to incorporate issues that were addressed in the Q&As;
• to reflect new and amended IFRSs that have been approved since the IFRS for SMEs was issued; and
• to address any other identified issues, eg implementation issues raised by constituents.

The IASB is currently developing the Invitation to Comment, with input from the SMEIG. This is expected to be issued for public comment in mid-2012.

In light of the comprehensive review, the SMEIG does not expect that it will issue any additional draft Q&As before the review is completed.

Following the review, the IASB plans to consider amendments to the IFRS for SMEs approximately once every three years.