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The IFRS for SMEs Accounting Standard Update is a staff summary of news, events and other information about the IFRS for SMEs® Accounting 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:

Proposed amendments to the IFRS for SMEs Accounting Standard

On 1 June 2023 the IASB published the Exposure Draft International Tax Reform—Pillar Two Model Rules—Proposed amendments to the IFRS for SMEs Standard. The Exposure Draft proposes amendments to help any affected SMEs respond to international tax reform and to align with similar amendments to IAS 12 Income Taxes.

The amendments to Section 29 Income Taxes of the IFRS for SMEs Accounting Standard are proposed in response to Organisation for Economic Co-operation and Development (OECD) Pillar Two model rules. The proposed amendments would:

  • introduce a temporary exception to the requirements to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes;
  • introduce targeted disclosure requirements for periods when Pillar Two legislation is in effect; and
  • clarify that ‘other events’ in the disclosure objective in paragraph 29.38 of the IFRS for SMEs Accounting Standard include enacted or substantively enacted Pillar Two legislation.

The IASB invites comments on the Exposure Draft. Respondents can submit comments to the IASB electronically:

The Exposure Draft is open for comment until 17 July 2023.

This is the first time that the IASB has proposed urgent amendments to the IFRS for SMEs Accounting Standard outside the periodic reviews.

IFRS for SMEs Accounting Standard educational material: Effects of climate-related matters on financial statements

In response to feedback from some SMEIG members and comments on the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard, the IFRS Foundation published educational material to illustrate how the IFRS for SMEs Accounting Standard requires entities to consider climate-related matters that have a material effect on their financial statements.

The educational material contains a non-exhaustive list of examples of situations in which entities might need to consider climate-related matters in their financial statements and is aimed at supporting the consistent application of the IFRS for SMEs Accounting Standard. It neither adds to nor changes the requirements in the IFRS for SMEs Accounting Standard. The material is based on similar educational material published by the IFRS Foundation to support the full IFRS Accounting Standards.

Appointment of new SMEIG members

From April to June 2023, the Trustees of the IFRS Foundation appointed 12 new members to the SMEIG. These new members will start their three-year terms on 1 July 2023, at which time seven existing members will step down. The new members are listed in the table below, along with their jurisdictions and affiliations.

New SMEIG members
Name Jurisdiction Affiliation

Omar Alberto Benitez Anibal


IFRS Specialist, Grant Thornton Perú

Wilfred Au


VP Finance, TD Bank Group

Noluthando Bobani

South Africa

Business Partner—Finance, Old Mutual Limited

Elaine Conway

United Kingdom

Lecturer and Small Business Coordinator, Loughborough Business School, Loughborough University

Cecília Geron


Partner, Praesum

Nancy Aragón Granja


General Manager—Partner, Arista Global Group

Fridrich Housa


Deputy Technical Director, Australian Accounting Standards Board (AASB)

Pramod Jain


Chairman, Accounting Standards Board, Institute of Chartered Accountants of India

Eng Kian Lee


Managing Partner, PKF-CAP LLP

Deputy Chairman, Public Accounting Practice Committee, Institute of Singapore Chartered Accountants (ISCA)

Ernest Muguku Muriu


Partner, Ernest & Martin Associates

Martín Eduardo Nazzarro


Partner, Nazzarro & Co. National University of Cuyo

Eva Sundberg


Senior accounting specialist, Swedish Accounting Standards Board, Bokföringsnämnden (BFN)

Further information about the SMEIG is available in the Terms of Reference and Operating Procedures for the SMEIG.

Next steps in the second comprehensive review of the IFRS for SMEs Accounting Standard

The IASB is undertaking its second comprehensive review of the IFRS for SMEs Accounting Standard. On 8 September 2022 the IASB published the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (Exposure Draft) as part of this review. The Exposure Draft was open for comment for 180 days, which ended on 7 March 2023.

At the June 2023 IASB meeting, the staff presented the feedback from comment letters and outreach events on the Exposure Draft. This feedback will also be presented at the next SMEIG meeting, which will take place on 13 July 2023. At this meeting, the staff will ask SMEIG members for their advice on specific issues related to the feedback on the Exposure Draft. More information about the meeting will be made available on the SMEIG meeting page.

After receiving advice from the SMEIG, the staff will prepare a project plan for the IASB to redeliberate the proposals in the Exposure Draft.