SME Implementation Group publishes its first Q&A guidance

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24 Jun 2011

The SME Implementation Group (SMEIG) has published its first final question and answer (Q&A) guidance on the IFRS for SMEs.

Q&As are non-mandatory guidance.

Q&A 2011/01 Use of the IFRS for SMEs in a Parent's Separate Financial Statements addresses whether a parent entity that itself does not have public accountability may present its separate financial statements in accordance with the IFRS for SMEs if it is part of a group that is required (or elects) to present consolidated financial statements in accordance with full IFRSs.

SMEIG concludes that an entity is eligible to use the IFRS for SMEs if it does not have public accountability. A parent entity assesses its eligibility to use the IFRS for SMEs in its separate financial statements on the basis of its own public accountability without considering whether other group entities have, or the group as a whole has, public accountability.

SMEIG has two principal responsibilities:

  1. to develop non-mandatory guidance for implementing the IFRS for SMEs in the form of questions and answers (Q&As) that will be made publicly available to interested parties on a timely basis, and
  2. to make recommendations to the International Accounting Standards Board (IASB) if and when needed regarding the need to amend the IFRS for SMEs.

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