On or about 14 October 2019, the Accounting Standards Council (ASC) has submitted its comment to the SME Implementation Group (SMEIG) on Draft Q&A Section 35, Issue 1 on Application of the undue cost or effort exemption for investment property on transition to the IFRS for SMEs Standard (Section 35 Transition to the IFRS for SMEs Standard, Issue 1).
The ASC agree with the SMEIG’s conclusion in its response as set out in the draft Q&A.
The ASC view that there is much merit in not restricting the SMEIG’s response to one particular type of‘undue cost or effort’ assessment in relation to reliable measurement of fair value for investment property at the date of transition.
The same principle in paragraph 2.14Cof the IFRS for SMEs Standard that underlies the SMEIG’s response would apply to other types of ‘undue cost or effort’ assessment at the date of transition.
The ASC therefore recommend that the SMEIG should consider broadening the scope of the Q&A by:
- extending the conclusion in the guidance to different types of ‘undue cost or effort’ assessment at the date of transition, or at a minimum to those in relation to reliable measurement of fair value for the various items specified bythe Standard; and
- including the specific issue in question as an example of the guidance.
Source: ASC website, 14 October 2019