The IASB published proposals in the exposure draft Third Edition of the IFRS for SMEs Accounting Standard in order to update the standard for small and medium-size entities (SMEs).
In developing exposure drafts, the IASB said it considers new and amended IFRS accounting standards, as well as issues raised in application of the standard.
The proposed amendments include updating the standard to align with the principles in The Conceptual Framework for Financial Reporting (issued in 2018) and simplified requirements based on IFRS 13, Fair Value Measurement, and IFRS 15, Revenue From Contracts With Customers.
The IASB is also proposing to update the standard to accommodate new requirements in IFRS 3, Business Combinations, IFRS 9, Financial Instruments, IFRS 10, Consolidated Financial Statements, and IFRS 11, Joint Arrangements.
The proposals reflect stakeholder feedback to the 2020 Comprehensive Review of the IFRS for SMEs Standard, and advice from the IASB’s SME Implementation Group.
“The IFRS for SMEs Accounting Standard has always been about keeping accounting requirements as simple as possible and cost-effective for eligible companies. These proposed updates respond to the feedback on how to keep the standard current while maintaining its simplicity,” Andreas Barckow, chair of the IASB, said in a news release.
The proposed date for when the amendments are effective is at least two years from the date that the third edition is issued. Early adoption of the third edition in its entirety would be permitted.
Comments can be submitted online or by email to commentletters@ifrs.org. The comment deadline is 7 March 2023.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.