Q&A guidance published on accounting for the issue of financial guarantee contracts under the IFRS for SMEs Standard

14 December 2017

The IFRS Foundation has today published guidance on the IFRS for SMEs® Standard following public consultation. The guidance has been developed by the SME Implementation Group (SMEIG).

The guidance is in the form of a question-and-answer document (Q&A) and advises how an issuer should account for financial guarantee contracts.

The SMEIG is responsible for assisting the International Accounting Standards Board (Board) on matters related to the implementation of the IFRS for SMEs Standard. Developing non-mandatory and timely guidance on specific accounting questions raised by companies and other interested parties on implementation of the Standard is one of the two main responsibilities of the SMEIG. The other is to make recommendations to the Board regarding possible amendments to the Standard.

This Q&A guidance is the first to be published since the initial IFRS for SMEs Standard was completed in May 2015.