The draft guidance is in the form of a questions and answers (Q&A) document and addresses the accounting treatment for a financial guarantee issued by a parent company in that parent company’s separate financial statements.
The SMEIG is responsible for assisting the IASB matters related to the implementation of the IFRS for SMEs Standard. Developing non-mandatory and timely guidance on specific accounting questions raised by those implementing the Standard is one of the two main responsibilities of the SMEIG. The other is to make recommendations to the Board regarding amendments to the Standard.
This draft guidance is the first to be published since the initial comprehensive review of the IFRS for SMEs Standard was completed in May 2015.
The consultation is open for comment until 1 September 2017 and can be accessed here.