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Comprehensive review of the IFRS for SMEs

Date recorded:

The purpose of this meeting was for the IASB to review the due process steps taken in the comprehensive review of the IFRS for SMEs and decide whether the staff can begin the balloting process for an Exposure Draft of proposed amendments to the IFRS for SMEs.

The Staff asked the following questions to the IASB Board:

Permission to begin the balloting process

1. Are there any further due process steps that the IASB think are necessary before beginning the balloting process?

The Board agreed that there are no further due process steps necessary.

2. Does the IASB grant the staff permission to begin the balloting process?

The Board agreed to grant the staff permission to begin the balloting process.

3. Do any IASB members intend to dissent from the proposals?

No IASB members intend to dissent from the proposals.

Transition rules and effective date

4. Does the IASB agree that the proposals should be applied retrospectively but that a question should be asked in the ED to identify any areas where this may cause difficulties?

The Board tentatively agreed that the proposals should be applied retrospectively.

5. Does the IASB agree that the effective date of the amendments to the IFRS for SMEs should be one year after the final amendments are issued and that early adoption should be permitted?

One member had some doubts about this as the amendments may be a change that requires extensive training for adoption and more time should be allowed for entities to become accustomed to what the changes are.

Some member did not approve of early adoption as it creates incomparable information across entities, that is, between those that early adopt and those that do not.

Other members disagreed with the above and felt that the changes were relatively simple and easy to understand.

The Board tentatively agreed to leave the effective transition date as one year after the final amendments are issued and retain the ability to early adopt, but seek feedback.

Comment period

6. Does the IASB agree that the comment period should be 150 days?

One member queried why the comment period was so long. It was clarified that this was for the purpose of reflecting the outreach process for SMEs as opposed to the actual content of the proposals. The team relies on a few organisations to reach out to the smaller entities to educate them and obtain feedback from them. Because of this, it may take longer than normal to obtain the feedback.

The Board agreed that the comment period should be 150 days.

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