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


The International Accounting Standards Board (IASB) has published for public comment the Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (Addendum Exposure Draft). 

The proposals in this Addendum Exposure Draft supplement those in the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard published in September 2022; as to respond to feedback that amendments made to full IFRS Accounting Standards relating to supplier finance arrangements and lack of exchangeability are relevant to SMEs. 

Specifically, the Addendum Exposure Draft aims to align:

(a) Section 7 Statement of Cash Flows with IAS 7 Statement of Cash Flows as amended by Supplier Finance Arrangements; and

(b) Section 30 Foreign Currency Translation with IAS 21 The Effects of Changes in Foreign Exchange Rates, as amended by Lack of Exchangeability.

Accordingly, the Addendum Exposure Draft would affect:

• as for proposed amendments to Section 7; an SME that, as a buyer, enters into one or more supplier finance arrangements (as described in the proposals), under which the SME, or its suppliers, can access financing for amounts the SME owes its suppliers.

• as for proposed amendments to Section 30; an SME: 

(a) that has transactions in non-exchangeable foreign currencies;

(b) that has a foreign operation with a non-exchangeable functional currency; or

(c) whose presentation or functional currency is non-exchangeable.

Click here to access the Exposure Draft.

Invitation to comment 

The Exposure Draft is open for comment until 28 June 2024.

You may provide your comments via email to us at technical@masb.org.my

Click here to submit your comments.