IFRS for SMEs Update

The public comment period has now ended on the following two draft Q&As relating to the IFRS for SMEs. After considering the comments, the staff have proposed some minor clarifying changes and have sent drafts of final Q&As to the SME Implementation Group (SMEIG) for a 30-day review period to obtain their approval to send them to the Board:

Section 11 Issue 1—Fallback to IFRS 9 Financial Instruments
Section 30 Issue 1—Recycling of cumulative exchange differences on disposal of a subsidiary.

The SMEIG is currently coming to the end of their 30-day review period of the following draft Q&As:

General Issue 1—Application of the IFRS for SMEs for financial periods ending before the IFRS for SMEs was issued
General Issue 2—Interpretation of 'undue cost or effort' and 'impracticable'
Section 3 Issue 1—Jurisdiction requires fallback to full IFRSs
Section 3 Issue 2—Departure from a principle in the IFRS for SMEs
Section 3 Issue 3—Prescription of the format of financial statements by local regulation.

When the IASB issued the IFRS for SMEs in 2009, it made a commitment to undertake a comprehensive post-implementation review of the standard. The IASB expects to initiate the review in the second half of 2012. The review is expected to include a request for public comments on amendments that should be considered for the standard. As part of the review, the IASB will also consider incorporating Q&As into the revised IFRS for SMEs. For that reason, the SMEIG does not expect that it will issue many, if any, additional draft Q&As before the start of the comprehensive review.

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Q&As about the IFRS for SMEs: status report

The table below provides a status report on the Q&As that have been considered by the SME Implementation Group (SMEIG) so far. You will find links to each final Q&A and draft Q&A here http://www.ifrs.org/IFRS+for+SMEs/Draft.htm.

The Terms of Reference of the SMEIG, as approved by the Trustees of the IFRS Foundation, establish criteria for Q&As (see paragraphs 15-17) and due process steps for issuing a Q&A (see paragraphs 18-36), including review of draft Q&As and final Q&As by the IASB before they are issued.

Q&A number / reference	Topic	Status
Final Q&As issued
Q&A 2011/01	Use of IFRS for SMEs in a parent’s separate financial statements	23 June 2011: final Q&A published
Q&A 2011/02	Entities that typically have public accountability	7 December 2011: final Q&A published
Q&A 2011/03	Interpretation of ‘traded in a public market’ in applying the IFRS for SMEs	7 December 2011: final Q&A published
Draft Q&As (comment period now closed)
General, Issue 1	Application of the IFRS for SMEs for financial periods ending before the IFRS for SMEs was issued	28 September 2011: draft Q&A published. 30 November 2011: comment period closed
General, Issue 2	Interpretation of ‘undue cost or effort’ and ‘impracticable’	28 September 2011: draft Q&A published. 30 November 2011: comment period closed
Section 3, Issue 1	Jurisdiction requires fallback to full IFRSs	28 September 2011: draft Q&A published. 30 November 2011: comment period closed
Section 3, Issue 2	Departure from a principle in the IFRS for SMEs	28 September 2011: draft Q&A published. 30 November 2011: comment period closed
Section 3, Issue 3	Prescription of the format of financial statements by local regulation	28 September 2011: draft Q&A published. 30 November 2011: comment period closed
Section 11, Issue 1	Fallback to IFRS 9 Financial Instruments	21 November 2011: draft Q&A published. 31 January 2012: comment period closed
Section 30, Issue 1	Recycling of cumulative exchange differences on disposal of a subsidiary	21 November 2011: draft Q&A published. 31 January 2012: comment period closed

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IFRS for SMEs translations: status report

Here is the current status of translations of the IFRS for SMEs approved by the IFRS Foundation:

Completed. Albanian*, Arabic, Armenian*, Chinese (simplified)*, Czech*, French*, Italian*, Japanese*, Lithuanian, Macedonian*, Mongolian*, Polish*, Portuguese*, Romanian*, Russian*, Serbian, Spanish*, Turkish*

In process. Bosnian, Estonian, Hebrew, Kazakh, Khmer, Ukrainian

Under discussion with the IFRS Foundation. Bulgarian, Georgian

*Available for free download here

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Additional Arabic-language training module

Module 7 Statement of Cash Flows of the Arabic-language translation of the IFRS Foundation training material has been posted. In total, 26 Arabic-language modules are available for download from the IFRS website (see http://www.ifrs.org/IFRS+for+SMEs/ArabicModules.htm).

The IFRS Foundation is grateful to the Arab Society of Certified Accountants (ASCA) Jordan for facilitating and funding the translation of the training material.

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Upcoming 'train the trainers' workshops

For more details see: http://www.ifrs.org/IFRS+for+SMEs/SME+Workshops.htm.

Central Asia/Europe

Date: 13–15 March 2012
Location: Astana, Republic of Kazakhstan
Instructors: Andrei Busuioc (Financial Management Specialist, CFRR, World Bank) and Michael Wells (Director, IFRS Education Initiative, IASB)
Language: Russian
Sponsoring organisation: The World Bank together with the Ministry of Finance Kazakhstan

Francophone Africa

Date: 17–19 April 2012
Location: Douala, Republic of Cameroon
Instructors: Gilbert Gélard (former IASB member) and Michael Wells
Language: French
Sponsoring organisation: The World Bank together with the OHADA Commission

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Where to obtain IFRS for SMEs materials

The standard online
(Albanian, Armenian, Chinese (simplified), Czech, English, French, Italian, Japanese, Macedonian, Mongolian, Polish, Portuguese, Romanian, Russian, Spanish and Turkish)
The standard in hard copy
Information about the SME Implementation Group
Q & As
Presentations at 'train the trainers' workshops
Training materials in PDF format
Board and staff presentations about the IFRS for SMEs
Past issues of the IFRS for SMEs Update

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