The IFRS for SMEs Accounting Standard Update is a staff summary of news, events and other information about the IFRS for SMEs® Accounting Standard (Standard) and related SME activities. The staff summary has not been reviewed by the International Accounting Standards Board (IASB).
This edition of the IFRS for SMEs Accounting Standard Update includes:
Topic of the quarter—Exposure Draft Consolidation Exception
In May 2026 the IASB published the Exposure Draft Consolidation Exception, which addresses a question that was raised to the SMEIG and is open for comment until 9 September 2026.
The application question was about whether the exception in paragraph 9.3 of the Standard from preparing consolidated financial statements (the ‘consolidation exception’) applies to an intermediate parent if its ultimate (or intermediate) parent is an investment entity that produces separate financial statements in which the subsidiary is measured at fair value through profit or loss.
The question arose because IFRS 10 Consolidated Financial Statements exempts such parent entities from preparing consolidated financial statements if their ultimate parents (or any intermediate parents) prepare financial statements in which their subsidiaries are measured at fair value through profit or loss. Because paragraph 9.3 of the IFRS for SMEs Accounting Standard has no equivalent exception, the Standard’s requirements for such entities are more onerous than those in full IFRS Accounting Standards.
The IASB is proposing in the Exposure Draft to introduce an exception so an SME that is an intermediate parent with an investment entity parent is no longer required to prepare consolidated financial statements if the investment entity parent prepares financial statements applying full IFRS Accounting Standards in which investments in subsidiaries are measured at fair value through profit or loss in accordance with IFRS 10.
It is important for the IASB to hear feedback from both preparers and users of SME financial statements so that it can understand how widely the proposed exception would be used and how it would affect users of SMEs’ financial statements. Comments agreeing with the proposals are just as valuable as comments disagreeing with them.
The IASB will consider the feedback before deciding whether to issue amendments to the Standard. If the IASB does issue the amendments, they will be effective from 1 January 2027, the same as the effective date of the third edition of the Standard.
Reappointments to the SMEIG
The SMEIG is a consultative group for the IASB. It was created to support the global adoption of the Standard and to support its application.
SMEIG members are appointed for an initial three-year term and then are eligible to put themselves forward for reappointment for a second three-year term.
Eight members whose first term ends in June 2026 have been reappointed for a second term:
- Omar Alberto Benitez Anibal
- Noluthando Bobani
- Elaine Conway
- Cecília Geron
- Nancy Aragón Granja
- Ernesto Muguku Muriu
- Martín Eduardo Nazzarro
- Eva Sundberg
The IASB also thanks the 17 members who will finish their terms at the end of June 2026:
- Wilfred Au
- Jenny Carter
- Qi Chang
- Una Curtis
- Jose M Hinojal
- Fridrich Housa
- Pramod Jain
- Eng Kian Lee
- Gabriel Gaitan Leon
- Mike Mbaya
- Peter Lucas Mwambuja
- Ayodele Abiodun Ojo
- Andrea St Rose
- Edson Teixer
- Saif Ullah
- Leana Van Der Merwe
- Lei Yan
The SMEIG’s advice is crucial to the IASB’s decision-making process when developing and supporting the Standard, and the IASB is grateful to all members for their service to the SMEIG.
Later in 2026 there will be a call for nominations to the SMEIG to replenish its membership.
Resources to support implementation of the Standard
Resources published since the March 2026 IFRS for SMEs Accounting Standard Update
To support implementation of the third edition of the Standard, the IASB has published supporting materials comprising:
- updated educational modules to help SMEs to apply the Standard. These modules include explanations, examples and assessments. The IASB has published several modules and will publish the remaining modules in the third quarter of 2026. The published modules comprise:
- educational webcasts to help SMEs to implement the Standard. This webcast series complements the educational modules. The IASB has released Webcast 9: Overview of the updated Section 9 Consolidated and Separate Financial Statements and Section 15 Joint Arrangements.
Resources published before the March 2026 IFRS for SMEs Accounting Standard Update
To support implementation of the third edition of the Standard, the IASB has published supporting materials comprising:
- the Project Summary and the Feedback Statement and Effects Analysis—these documents were published alongside the Standard.
- the marked-up Standard—a version of the third edition of the Standard showing the changes made since the second edition in document markup.
- updated educational modules—these modules are designed to help SMEs to apply the Standard and include explanations, examples and assessments. The IASB is in the process of updating the educational modules, prioritising sections of the Standard that had significant changes in the third edition. The IASB has published:
- Module 1 Small and Medium-sized Entities;
- Module 2 Concepts and Pervasive Principles;
- Module 7 Statement of Cash Flows;
- Module 9 Consolidated and Separate Financial Statements;
- Module 11 Financial Instruments;
- Module 12 Fair Value Measurement;
- Module 15 Joint Arrangements;
- Module 18 Intangible Assets other than Goodwill;
- Module 19 Business Combinations and Goodwill;
- Module 23 Revenue from Contracts with Customers;
- Module 26 Share-based Payment;
- Module 28 Employee Benefits; and
- Module 35 Transition to the IFRS for SMEs Accounting Standard.
- educational webcasts—these webcasts were created to help SMEs to implement the Standard. This webcast series complements the educational modules. The IASB has released:
- Webcast 1: Overview of the third edition of the IFRS for SMEs Accounting Standard;
- Webcast 2: Overview of amendments to Section 11 Financial Instruments;
- Webcast 3: Overview of amendments to Section 7 Statement of Cash Flows;
- Webcast 4: Overview of the new Section 2 Concepts and Pervasive Principles;
- Webcast 5: Overview of the new Section 12 Fair Value Measurement;
- Webcast 6: Overview of the revised Section 23 Revenue from Contracts with Customers;
- Webcast 7: Overview of the revised Section 23 Revenue from Contracts with Customers; and
- Webcast 8: Overview of the revised Section 19 Business Combinations.
- a podcast series—these podcasts provide short insights into the third edition of the Standard. The January 2025, March 2025, September 2025 and February 2026 episodes are available.
