In preparation for the update of the IFRS for SMEs, IASB published a document that contained a number of questions to collect information on the best approach to update the standard to ensure its compliance with the requirements of the entire collection of IFRS.
SOCPA’s Accounting Standards Committee examined the document and carried out deliberation thereon with interested parties so as to provide feedback. The committee affirmed the importance of developing the standard according to the requirements of the entire collection of IFRS in a clear manner. This can be achieved through annulment of some of the requirements; rather than impose different requirements, and avoidance of authoring a version that is inconsistent in wording with the rest of standards. SOCPA also stressed that the applications of financial statements comply with the standard, given the limited resources of SMEs to prepare financial statements for a certain purpose, which may include obtaining financing and meeting statutory requirements, such as tax and zakat requirements. SOCPA noted that such approach in creating the new standard will reduce the cost of application for entities and auditors, including the costs of technical accounting systems, as distinctions from the full version will specific and clear, rather than an independent standard having set of requirements.
SOCPA remarks can be found by clicking here.