In May 2026, the International Accounting Standards Board (IASB) published the Exposure Draft Consolidation Exception.
The IASB is proposing amendments to the IFRS for SMEs Accounting Standard to introduce an exception from presenting consolidated financial statements for an SME with an ultimate (or intermediary) parent that is an investment entity and that does not present consolidated financial statements. Instead, the investment entity parent presents financial statements in which its subsidiaries are measured at fair value through profit or loss in accordance with IFRS 10 Consolidated Financial Statements.
The Exposure Draft will be open for comment for 120 days, with the comment period closing on 9 September 2026. The IASB plans to issue any resulting amendments by the end of 2026.
How to respond to the Exposure Draft
Stakeholders can respond to the request for comment on the Exposure Draft by submitting a comment letter below.
Find out more about how to submit the most effective response to our consultation.
Note: Please ensure you upload your comment letter as an editable PDF (at least one file must be uploaded). We do not accept Word documents, which will fail to upload. Please also ensure there are no periods or other reserved characters in the file name because these will cause an error.
All comment letters will be on the public record and posted on our website unless the respondent requests confidentiality. Such requests will not normally be granted without a good reason—for example, commercial confidence. If you would like to request confidentiality, please contact us before submitting your letter.
Comment Letter