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:
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 (2023 Exposure Draft).
The 2023 Exposure Draft was open for comment for 46 days, closing on 17 July 2023. The IASB received 27 comment letters.
The IASB met on 23 August 2023 and tentatively decided to finalise its proposals in the 2023 Exposure Draft with limited changes. The IASB’s tentative decisions at this meeting are available from the Supplementary IASB Update August 2023 page.
The amendments to Section 29 Income Taxes of the Standard are being made in response to Organisation for Economic Co-operation and Development Pillar Two model rules. The amendments will:
The IASB expects to issue the amendments for the Pillar Two model rules in September 2023.
As part of its second comprehensive review of the Standard, the IASB published the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (2022 Exposure Draft) on 8 September 2022.
The 2022 Exposure Draft proposes significant amendments to the Standard, applying the IASB’s alignment approach to full IFRS Accounting Standards in the scope of the review. The alignment approach treats alignment with full IFRS Accounting Standards as the starting point and applies the principles of relevance to SMEs, simplicity and faithful representation, including the assessment of costs and benefits, in determining whether and how that alignment should take place.
The 2022 Exposure Draft was open for comment for 180 days, closing on 7 March 2023.
At the June 2023 IASB meeting, the staff presented feedback on the 2022 Exposure Draft from comment letters and outreach events. The IASB also redeliberated the proposed amendments in the 2022 Exposure Draft that clarify the definition of public accountability. The IASB tentatively decided:
At its September 2023 meeting, the IASB discussed three overarching topics that will assist the IASB in its redeliberations of the proposals in the 2022 Exposure Draft:
In addition, the IASB was asked to consider and provide direction on two topics in the 2022 Exposure Draft:
More information about both meetings is available from the 'meetings' and 'project history' tabs on the project page.
The SME Implementation Group (SMEIG) met on 13 July 2023 to discuss feedback on the 2022 Exposure Draft and provide advice to the IASB on several topics:
The advice received from SMEIG members will be used by the IASB in redeliberating the proposals in the 2022 Exposure Draft.
The agenda papers for the meeting and the meeting summary are available on the 'meetings' tab of the SMEIG page.
Between April and June 2023, the Trustees of the IFRS Foundation appointed 12 new members to the SMEIG. These new members started their three-year terms on 1 July 2023, replacing seven members that did not stand for a second term at that date.
The membership of the SMEIG from 1 July 2023 is available on the 'members' tab of the SMEIG page, along with members’ jurisdictions and affiliations.
Further information about the SMEIG is available in the Terms of Reference and Operating Procedures for the SMEIG.