The IFRS Foundation’s SME Implementation Group (SMEIG), which assists the IASB in supporting the implementation of the IFRS for SMEs, published on 14 April 2011 three draft Q&As for public comment.

The first Q&A - Captive insurance subsidiaries - addresses whether a captive insurance entity is publicly accountable and whether a group of entities containing captive insurance subsidiaries is publicly accountable for the purposes of preparing consolidated financial statements.

The second Q&A - Interpretation of 'traded in a public market' - considers how the term 'traded in a public market' should be interpreted in the definition of public accountability.

The third Q&A - Investment funds with only a few participants - considers whether the criterion 'broad group of outsiders' means that investment funds or similar entities that restrict their ownership to only a few participants are not publicly accountable according to the IFRS for SMEs.

In its comment letter, EFRAG recommends the SMEIG to reconsider issuing the Q&As proposed, but instead to issue Q&As with a broader scope. Considering that four draft Q&As have now been issued on the first three (out of more than 750) paragraphs of the IFRS for SMEs, EFRAG is concerned that the SMEIG is not focusing on a limited number of pervasive issues when issuing Q&As, as specified in its terms of reference and operating procedures.

Press release