The European Commission will consider the
new IFRS for SMEs as part of its review of the European accounting

The commission began a review of the Fourth
and Seventh Company Law directives in February. The initial comment
period closed at the end of April and a legislative proposal was
due for release by the end of the year.

But following the release of the International
Accounting Standards Board’s (IASB) IFRS for SMEs last month, the
EC decided to take more time reviewing the directives to include a
consultation on the new standard.

Several EU member states, including the UK,
are proposing to adopt IFRS for SMEs as national GAAP. However, if
the standard does not comply with European accounting directives
they could be prevented from doing so.

The EC consultation represents a significant
change in attitude from Europe regarding the IFRS for SMEs.

The exposure draft of the standard was not
well received when it was released last year.

Speaking at a Federation of European
Accountants event in September last year, EC Internal Markets
director Pierre Delsaux said the commission did not like what was
being prepared by the IASB.

He suggested the Fourth and Seventh Company
Law Directives could be used instead as a base to develop an EU
standard for SMEs.

The final IFRS for SMEs has received
widespread praise for being much simpler than the exposure

European Commission staff are now conducting a
series of consultations with stakeholders to hear their views on
IFRS for SMEs, the reporting needs of SMEs and other issues
relating to the EU SME accounting framework.

Written comments have also been requested but
no deadline for comments has been supplied.