Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard

The IASB met on 17 September 2024:

• to consider feedback on the Exposure Draft Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (Addendum Exposure Draft); and
• to decide how to proceed with the project given that feedback.

The IASB tentatively decided:

1. to finalise the proposed amendments to Section 7 Statement of Cash Flows of the IFRS for SMEs Accounting Standard (Standard) as set out in the Addendum Exposure Draft, but with some minor revisions to clarify that an SME would be required to disclose in aggregate for its supplier finance arrangements:
   1. their key terms and conditions.
   2. the carrying amounts and associated line items of the financial liabilities that are part of those arrangements and for which the suppliers have already received payment from the finance providers, unless it would be impracticable to do so. If it would be impracticable to make this disclosure, the SME would be required instead to disclose that fact.
      Ten of 14 IASB members agreed with this decision.
2. to finalise the proposed amendments to Section 30 Foreign Currency Translation of the Standard as set out in the Addendum Exposure Draft with no changes.
   All 14 IASB members agreed with this decision.
3. to confirm that the amendments described in (a) and (b) to Section 7 and Section 30 of the Standard will have the same effective date as the third edition of the Standard (1 January 2027).
   All 14 IASB members agreed with this decision.
4. to include the same transition reliefs for the amendments described in (a) to Section 7 of the Standard as for amendments to IAS 7 Statement of Cash Flows.
   All 14 IASB members agreed with this decision.

All 14 IASB members:

1. confirmed they were satisfied that the IASB has complied with the applicable due process requirements;
2. agreed with the staff recommendation not to re-expose the proposals in the Addendum Exposure Draft; and
3. confirmed they were satisfied the IASB has undertaken sufficient consultation and analysis to include the proposed amendments to Section 7 and Section 30 in the process for balloting the third edition of the Standard.

At the July 2024 IASB meeting, one IASB member indicated an intention to dissent from issuing the third edition of the Standard. At this meeting, no other IASB member indicated an intention to dissent from issuing the third edition of the Standard with the inclusion of these amendments.