Current stage

The Board is developing a reduced-disclosure IFRS Standard that would apply on a voluntary basis to subsidiaries that are SMEs—that is, subsidiaries that do not have public accountability.

At its meeting on 26 January 2021, the Board decided to publish an exposure draft as the next due process step.

IASB® Update February 2021

The Board met on 17 February 2021 to discuss due process steps—including permission to begin the balloting process—for the exposure draft being developed for the project. 

All 13 Board members confirmed they were satisfied the Board has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the exposure draft.  

One Board member indicated an intention to dissent from the proposals in the exposure draft. 

Given that the exposure draft proposes a reduction in the disclosures that entities within its scope would otherwise be required to make applying IFRS Standards, in setting the comment period the Board noted: 

  • in addition to the time needed to analyse the suggested disclosure requirements, both preparers and users of financial statements will need sufficient time to understand what information an entity would not be required to disclose under the proposals; and
  • a longer comment period would allow respondents to assess more thoroughly the appropriateness of the suggested disclosure requirements when the recognition and measurement requirements differ between IFRS Standards and the IFRS for SMEs Standard. 

In the light of these considerations, the Board decided to allow 180 days for comment on the exposure draft. Seven Board members agreed with this decision. 

Next milestone

Exposure Draft

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