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The International Accounting Standards Board (IASB) published the Exposure Draft Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (Addendum Exposure Draft) in March 2024.

The Addendum Exposure Draft proposes amendments to the IFRS for SMEs Accounting Standard to align it with the requirements in full IFRS Accounting Standards for supplier finance arrangements and lack of exchangeability.

The proposals in the Addendum Exposure Draft supplement those in the exposure draft published in September 2022. 

IASB® Update December 2023

The IASB met on 14 December 2023 to discuss this project.

Following its tentative decision in October 2023 to expose for public comment a proposal to align the IFRS for SMEs Accounting Standard with the requirements in full IFRS Accounting Standards for supplier finance arrangements and lack of exchangeability, the IASB discussed:

  • proposed amendments to the IFRS for SMEs Accounting Standard to effect that alignment; and
  • due process steps—including permission to begin the balloting process—for the Exposure Draft Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (Addendum Exposure Draft).

The IASB tentatively decided to propose amendments to the IFRS for SMEs Accounting Standard to align:

  1. Section 7 Statement of Cash Flows with IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, as amended by Supplier Finance Arrangements; and
  2. Section 30 Foreign Currency Translation with IAS 21 The Effects of Changes in Foreign Exchange Rates, as amended by Lack of Exchangeability.

All 14 IASB members agreed with these decisions.

The IASB tentatively decided to propose:

  1. that the amended and revised Section 7 and Section 30 of the IFRS for SMEs Accounting Standard have the same effective date as that of the third edition of the IFRS for SMEs Accounting Standard;
  2. no transition reliefs in relation to the amendments to Section 7 of the Accounting Standard; and
  3. the same transition reliefs in relation to the amendments to Section 30 of the Standard as were provided by Lack of Exchangeability.

All 14 IASB members agreed with these decisions.

The IASB decided to set a comment period of 120 days for the Addendum Exposure Draft.

All 14 IASB members agreed with this decision.

All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the Addendum Exposure Draft.

No IASB member indicated an intention to dissent from the proposals in the Addendum Exposure Draft.

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