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IFRS for SMEs 2013 Proposed Amendments


When the IASB issued the IFRS for SMEs in July 2009, it stated that it planned to undertake an initial comprehensive review of SMEs' experience in applying the IFRS for SMEs when two years of financial statements using the IFRS for SMEs had been published by a broad range of entities.

In June 2012 the IASB issued a Request for Information (RFI) as the first step in that initial comprehensive review. The objective of the RFI was to seek public views on whether there is a need to make any amendments to the IFRS for SMEs. The RFI asked questions about the IFRS for SMEs based on issues frequently raised by interested parties and relating to new and revised IFRSs issued since the IFRS for SMEs was published in 2009.

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

In February 2013 the SMEIG reviewed the responses to the RFI in a public meeting and developed recommendations for the IASB on possible amendments. The recommendations developed by the SMEIG were presented to the IASB and published on the IASB website in March 2013.

The IASB discussed the issues identified during the RFI process (and a few additional issues) and deliberated possible amendments to the IFRS for SMEs during its March - June 2013 meetings.

In September and October 2013 EFRAG SME Working Group considered IASB's tentative decisions on IFRS for SMEs.

On 3 October 2013 the IASB published the Exposure Draft ED/2013/9 Proposed Amendments to the IFRS for SMEs and on 31 October 2013 EFRAG published its Draft Comment Letter on the IASB's proposed amendments.

On 21 February 2014, EFRAG SME Working Group considered the comments that EFRAG received in response to its draft comment letter and discussed EFRAG's final comment letter.

On 4 March 2014, EFRAG published its final comment letter on the IASB's Proposed Amendments to the IFRS for SMEs. In its letter, EFRAG welcomed the proposed amendments to the IFRS for SMEs and appreciated the IASB's efforts to consider the issues identified during the Request for Information (RfI) process.

In particular, EFRAG supported the IASB's proposal to align the main principles of Section 29 Income Tax with IAS 12 Income Taxes for the recognition and measurement of deferred tax. However, EFRAG encouraged the IASB to undertake an outreach with users and preparers to consider practical solutions for SMEs that cannot apply the requirements in section 29 without an undue cost or effort.

In addition, EFRAG thought that the IFRS for SMEs should not be changed based on changes in full IFRS that had not yet been implemented and considered that post-implementation reviews of new and revised IFRS represented the best opportunity to assess the suitability of the changes for SMEs.

Finally, EFRAG reiterated its recommendations specified in EFRAG's response to the IASB's Request for Information that it would be beneficial to SMEs if the IFRS for SMEs permitted the use of the revaluation model for Property, Plant and Equipment and included an option for the borrowing costs and development costs to be capitalised.
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