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Deloitte comments on IASB SME preliminary views

  • Deloitte Comment Letter Image

11 Sep 2004

The Deloitte letter of comment on the IASB's Discussion Paper Preliminary Views on Accounting Standards for Small and Medium-sized Entities (SMEs) recommends creation of a separate committee to develop international accounting standards for SMEs.

Its standards would be subject to approval by the IASB. Click to (PDF 111k). Deloitte's overall view:

We believe that this consultation is timely as it will allow the IASB to consider the comments and to amend, as appropriate, its preliminary views before proceeding to an exposure draft stage. We have serious reservations about certain aspects of this project, which we detail in the appendix to this letter. In our view, if the IASB were to continue the project based on its preliminary views, then the resulting standards for small and medium-sized entities (SMEs) would be of limited practical use, would not address the needs of SMEs and would not reduce significantly the number of separate accounting regimes for SMEs around the world. We believe that this SME project is very important politically for the IASB's standing around the world. The Board's consultations with national standard-setters and its own Standards Advisory Council have demonstrated the need for this project and the priority attached to it.

We acknowledge the current time and work pressures on the Board. We suggest that the IASB or the International Accounting Standards Committee Foundation (IASCF) considers establishing a committee focused on SME accounting. Responsibility for developing the Standards for SMEs would be deputed to this committee, with final approval by the IASB, in the same way as responsibility for developing Interpretations rests with IFRIC subject to final Board approval. This project needs adequate attention to ensure the correct foundations are in place.

You will find all past Deloitte comment letters to IASB/IASC Here.

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