The IASB project is developing specific versions of each IAS/IFRS for use by entities which do not have public accountability but do publish general purpose financial statements for external users - known as NPAEs (non-publicly accountable entities). The IASB recently appointed a subcommittee of IASB members to oversee the project which presented its preliminary recommendations in December 2004. The IASB will consider recognition and measurement simplifications for SMEs, as well as disclosure and presentation simplifications, based only on user needs and cost-benefit considerations as provided for in the IASB Framework.

The IASB is currently undertaking a consultation on areas where recognition and measurement modifications might be made to full IFRS to meet the needs of NPAEs. A questionnaire has been prepared by IASB staff as a tool to identify potential modifications and will be discussed at public round-table meetings to be held in September 2005 with preparers and users of NPAE financial statements. The IASB will address presentation and disclosure issues separately, though it acknowledges that recognition and measurement decisions may create presentation and disclosure issues.

The IASB consultation closes on 31 May 2005.