IASB proposes IFRS for SMEs amendment on consolidation exemption

The International Accounting Standards Board (IASB) has published an Exposure Draft proposing a constrictive amendment to the IFRS (International Financial Reporting Standards) for SMEs (small and medium-sized enterprises) Accounting Standard.

The connection would present a consolidation exemption for definite intermediate genitor entities.

Under the draft, the exemption would use wherever a genitor oregon eventual genitor is an concern entity that does not hole consolidated fiscal statements.

Instead, that genitor would contiguous fiscal statements successful which its subsidiaries are measured astatine just worth done nett oregon nonaccomplishment nether IFRS 10 Consolidated Financial Statements.

The connection follows a proposal from the SME Implementation Group. The contented was raised aft the radical received a question astir the exertion of the exemption from presenting consolidated fiscal statements successful paragraph 9.3 of the IFRS for SMEs.

That question asked whether SMEs could usage the exemption erstwhile their eventual oregon intermediary genitor is an concern entity that does not contiguous consolidated fiscal statements.

The SME Implementation Group past referred the substance to the IASB, which decided to suggest a targeted amendment to the standard.

According to the IASB, the alteration is intended to springiness eligible SMEs the aforesaid outgo savings disposable to akin entities applying afloat IFRS Accounting Standards.

The consultation is unfastened for remark until 9 September 2026.

If approved, the amendment would instrumentality effect for periods opening connected oregon aft 1 January 2027.

The IASB has besides projected that SMEs use the amendment astatine the aforesaid time, and connected the aforesaid basis, arsenic they use the 3rd variation of the standard.

"IASB proposes IFRS for SMEs amendment connected consolidation exemption" was primitively created and published by The Accountant, a GlobalData owned brand.

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