The International Accounting Standards Board (IASB) has published an Exposure Draft proposing narrow-scope amendments to the IFRS for SMEs Accounting Standard. The proposal introduces a consolidation exception for intermediate parents that have a parent or ultimate parent that is an investment entity and that does not produce consolidated financial statements.
The IASB’s proposal responds to a recommendation from the SME Implementation Group. The proposed change aims to provide eligible SMEs with the same cost savings available to similar entities under full IFRS Accounting Standards.
The consultation is open for comment until 9 September 2026. If approved, the amendments will become effective for periods beginning on or after 1 January 2027. This timeline aligns with the effective date of the third edition of the IFRS for SMEs Accounting Standard. Earlier application will be permitted for entities that apply this edition early.
Read and comment
- Exposure Draft Consolidation Exception
- Submit a comment letter on the Exposure Draft. The comment period closes on 9 September 2026.
Followable tags
IFRS Accounting consultative documents
IFRS Accounting Standards development
The IFRS for SMEs Accounting Standard
