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IFRS for SMEs - Comprehensive Review - Request for Information


In 2009 the IASB issued the IFRS for SMEs. At that time, the IASB expected to undertake a thorough review of SMEs' experience in applying the IFRS for SMEs when two years of financial statements using the IFRS had been published by a broad range of entities.

In June 2012, the IASB published a request for information related to a comprehensive review of the IFRS for SMEs ('the RFI').

On 24 August 2012, EFRAG issued its draft comment letter in response to the RFI. Comments were invited by 12 November 2012.

On 20 December 2012. EFRAG issued its final comment letter in response to the RFI.

In its comment letter, EFRAG noted that many constituents found the purpose of the IFRS for SMEs and the objective of the RFI unclear, which made it difficult to respond to the RFI.

EFRAG also noted that some respondents to EFRAG's draft comment letter thought that non-listed subsidiaries of listed parent entities should be considered an important group of users of the IFRS for SMEs. These entities wanted to be able to prepare financial statements in accordance with the recognition and measurement requirements used for the consolidation under full IFRS, but with fewer disclosures. EFRAG believed that it would be relevant for the IASB to consider whether a regime for these entities should be developed, as it had been in some jurisdictions. However, EFRAG believed that if the IASB decided to develop such a regime it should not be introduced through the IFRS for SMEs, but by other means.

Some of the questions included in the RFI asked whether changes to full IFRS should be incorporated into the IFRS for SMEs. EFRAG generally thought that the changes should only be incorporated if they represented a solution to an identified and documented problem for SMEs and/or had proven useful for entities applying full IFRS.

As expressed in its comment letter in response to the exposure draft on the IFRS for SMEs, EFRAG was generally against including options in the IFRS for SMEs, as it, among other things, would reduce comparability. In some cases, however, EFRAG could see benefits of including options to facilitate the adoption of the IFRS for SMEs. If the introduction of these options would result in more entities being able to prepare financial statements in accordance with the IFRS for SMEs, it would enhance overall comparability.
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