Hi,
Are there any amendments to IFRS for SMEs after 2015?
IFRS for SMEs Amendments
Re: IFRS for SMEs Amendments
The IASB are currently undertaking a "comprehensive review" of the 2015 IFRS for SMEs (its second review of the standard). The current work plan suggests that an Exposure Draft of a new Standard will be exposed in Q3 2022. But for now the 2015 standards are the ones to use.
If you are interested to see a summary of the likely changes to the IFRS for SMEs currently proposed the IASB just released a "condensed summary of the IASB’s tentative decisions"
https://www.ifrs.org/content/dam/ifrs/p ... isions.pdf
The IASB has really struggled with what the IFRS for SMEs actually is. Is it "IFRS Lite" or is its own slowly evolving standard (that happens to be based on a version of IFRS that existed in the early 2000s)? This has been a hotly contested discussion both internally and externally (well mildly hot at least). It depends on whether you think IFRS for SMEs is a standard for the masses of SMEs and should be developed in isolation for their needs or a stepping stone for growing companies towards full IFRS. This is partly a definitional problem, all the IFRS for SMEs says is you can't use it if you have "public accountability" (there is a bit more in there, I am simplifying), because if you do you have to use full IFRS (side note: full IFRS does not define who has to use it in the standards, but IFRS for SMEs does define who has to use full IFRS, which is a bit odd). So is IFRS for SMEs for largish entities that don't quite need IFRS yet, but probably will in the future, or for some wider group. This is left to jurisdictions to decide, but this makes the standards hard to focus.
I fear the IASB have tried to walk a middle ground that makes no one happy. They have brought in a version of IFRS 9 for financial instruments, they have also brought in IFRS 15 for revenue recognition. However they have not updated the Leases section.
If you are interested to see a summary of the likely changes to the IFRS for SMEs currently proposed the IASB just released a "condensed summary of the IASB’s tentative decisions"
https://www.ifrs.org/content/dam/ifrs/p ... isions.pdf
The IASB has really struggled with what the IFRS for SMEs actually is. Is it "IFRS Lite" or is its own slowly evolving standard (that happens to be based on a version of IFRS that existed in the early 2000s)? This has been a hotly contested discussion both internally and externally (well mildly hot at least). It depends on whether you think IFRS for SMEs is a standard for the masses of SMEs and should be developed in isolation for their needs or a stepping stone for growing companies towards full IFRS. This is partly a definitional problem, all the IFRS for SMEs says is you can't use it if you have "public accountability" (there is a bit more in there, I am simplifying), because if you do you have to use full IFRS (side note: full IFRS does not define who has to use it in the standards, but IFRS for SMEs does define who has to use full IFRS, which is a bit odd). So is IFRS for SMEs for largish entities that don't quite need IFRS yet, but probably will in the future, or for some wider group. This is left to jurisdictions to decide, but this makes the standards hard to focus.
I fear the IASB have tried to walk a middle ground that makes no one happy. They have brought in a version of IFRS 9 for financial instruments, they have also brought in IFRS 15 for revenue recognition. However they have not updated the Leases section.
Re: IFRS for SMEs Amendments
Thank you. I really admire your insights.
Re: IFRS for SMEs Amendments
exIFRS's insights are always impressive!