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IASB member discusses the second comprehensive review of the IFRS for SMEs Standard

  • IASB (International Accounting Standards Board) (blue) Image

14 Aug 2020

IASB member Darrel Scott has issued an article discussing the review of the IFRS for SMEs Standard and his views on alignment with full IFRS Standards.

In the article In Brief: Second comprehensive review of the IFRS for SMEs Standard What does alignment mean?, Mr Scott discusses the latest comprehensive review of the IFRS for SMEs Standard and provides additional context around the ‘alignment with full IFRS Standards’ debate — that is, whether, how and when to reflect changes to IFRS Standards in the IFRS for SMEs Standard.

Mr Scott outlines two possible approaches, which he likens to "the two ends two ends of a continuum":

  • Simplified IFRS Standard approach — This requires that the IFRS for SMEs Standard is treated as a condensed version of full IFRS Standards. Also referred to as the 'top-down' approach.
  • Independent Standard approach — This requires that the IFRS for SMEs Standard be viewed as an independent text. Also referred to as the 'bottom-up' approach.

He discusses each approach in full, but notes that the Board's preferred approach is the simplified IFRS Standard approach, or the 'top-down' approach.

Please click to access the article on the IASB website.

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