IASB proposes narrow amendment to IFRS for SMEs standard.
The International Accounting Standards Board (IASB) recently published an Exposure Draft proposing a small, practical change to the IFRS for SMEs Accounting Standard.
The amendment introduces a consolidation exception for intermediate parent companies whose own parent or ultimate parent is an investment entity that does not produce consolidated financial statements. This update brings the SME standard into line with the equivalent rule outlined within the full IFRS Accounting Standards.
The proposal responds to a recommendation from the SME Implementation Group, and if finalised would take effect for periods beginning on or after 1 January 2027, aligned with the third edition of the IFRS for SMEs standard. The consultation is open until 9 September 2026.
Changes to the IFRS for SMEs standard are worth keeping an eye on: the standard is used in well over 80 countries, and any updates will eventually ripple through to the taxonomies and tagging requirements that underpin structured financial reporting for smaller entities around the world.
Read more here.
