IFAC Response to IFRS for SMEs Exposure Draft

This response has been prepared following consultation across our broad constituent base; recognizing that some of IFAC’s stakeholders may have different views on the issues presented below. It is relevant to note that IFAC’s Small and Medium Practices Committee1 contributed significantly in preparing this response, given their specific expertise in dealing with Small and Medium-sized Entities (SMEs).

IFAC believes that the IFRS for SMEs (the standard) has the potential to promote consistency and rigor in the financial statements prepared by SMEs. Through its Statements of Membership Obligations, IFAC requires its members to encourage responsible parties to consider the use of IFRS for SMEs for non-public interest entities, as the basis for preparing financial statements.