Ease of Doing Business for MSMEs: The Institute of Chartered Accountants of India (ICAI) has released an exposure draft on International Financial Reporting Standard (IFRS) for small and medium enterprises (SMEs) Accounting Standard, as per a report by the Knowledge and News Network (KNN). The institute has also called for suggestions and feedback from stakeholders by December 31, 2022 based on the draft.

IFRS for SMEs Accounting Standard are applied for general purpose financial statements of small companies, mainly SMEs, private entities and non-publicly accountable entities, required in 86 jurisdictions across the globe.

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This standard is based on full IFRS with variations to reflect the users needs of SMEs’ financial statements and cost-benefit considerations. The focus of the standard is on the information needs of lenders, creditors and other users of SME financial statements who are essentially interested in information about cash flows, liquidity and solvency.

The first edition of the IFRS for SMEs Accounting Standards was issued in 2009 by the International Accounting Standards Board (IASB). The IASB works at maintaining the SMEs Standards through periodic review and proposes amendments by publishing an omnibus exposure draft.

The Board considers new and amended IFRS Accounting Standards and the issues brought to its attention regarding the application of the Standard in developing these exposure drafts. In 2015, the board did its first comprehensive review of the Standard in 2015 and the second comprehensive review took place in 2019.

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The IASB has published a Request for Information Comprehensive Review of the IFRS for SMEs Standard in its second comprehensive review and took consultation with the SME Implementation Group (SMEIG), an advisory body to the IASB, the report added. 

After reviewing the feedback on the Request for Information and SMEIG recommendations, the IASB is now proposing amendments to the IFRS for SMEs Accounting Standard.