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:
• an overview of the proposed amendments in the Exposure Draft International Tax Reform—Pillar Two Model Rules—Proposed amendments to the IFRS for SMEs Standard;
• an overview of the IFRS for SMEs Accounting Standard educational material: Effects of climate-related matters on financial statements prepared in accordance with the IFRS for SMEs Accounting Standard;
• a list of new members appointed to the SME Implementation Group (SMEIG); and
• the next steps in the second comprehensive review of the IFRS for SMEs Accounting Standard.
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:
• via the open for comment page; or
• by completing the survey.
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.
https://www.ifrs.org/supporting-implementation/supporting-materials-for-the-ifrs-for-smes/ifrs-for-smes/2023/june-2023-ifrs-for-smes-accounting-standard-update/