The SME Implementation Group has issued the first draft guidance for implementing International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).
The new guidance 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.
The SME Implementation Group is responsible for developing non-mandatory and timely guidance on specific accounting questions being raised by those implementing IFRS for SMEs. It also makes recommendations to the International Accounting Standards Board regarding amendments to the IFRS for SMEs.
The recommendations are then considered every three years when the IFRS for SMEs is updated.
Deadline to comment on the guidance is 4 April.