EFRAG responds to IASB SME questionnaire
15 Jul 2005
In their Response to the IASB's SME Questionnaire (PDF 80k), the European Financial Reporting Advisory Group (EFRAG) expresses support for the Board's decision to develop a separate set of financial reporting standards for small and medium-sized entities (SMEs).
"We see this as an opportunity to further harmonise accounting standards in Europe and globally," the letter to the IASB states. EFRAG recommends that the IASB develop SME standards with a typical medium-sized SME in mind. "All the decisions it makes about the transactions to be addressed and the simplifications to be made should be based on that type of entity. We would though recommend that the IASB should include all other non-publicly accountable entities within the scope of its SME standards and should leave each jurisdiction to decide exactly where to draw the line between entities that should follow the listed entity standards and entities that are permitted to apply SME standards."