The International Accounting Standards Board (IASB) has concluded critical technical deliberations on three significant projects, paving the way for new standards implementation and affirming the effectiveness of existing guidance.
- IFRS for SMEs: Third Edition Finalized for 2027 Implementation
- The IASB has completed its second comprehensive review of the IFRS for SMEs Accounting Standard, aimed at enhancing the relevance of financial information for SME statement users while maintaining the standard’s simplicity.
- The finalized Third Edition of the standard will be mandatory for annual reporting periods beginning on or after 1 January 2027.
- Publication of the Third Edition is targeted for the first half of 2025, providing stakeholders ample preparation time.
- New Standard on Rate-Regulated Activities Confirmed for 2029
- Technical work on the Rate-regulated Activities project is complete. The IASB will now proceed to develop a final new standard.
- This forthcoming standard is designed to significantly improve transparency for users regarding the financial impact of rate regulation on companies’ performance and financial position.
- The IASB anticipates issuing the new standard in the second half of 2025.
- The proposed effective date is 1 January 2029, with early application permitted. This extended timeline facilitates thorough implementation planning by affected entities.
- Post-Implementation Review Validates IFRS 15 Effectiveness
- The IASB has finalized its Post-Implementation Review (PIR) of IFRS 15 Revenue from Contracts with Customers (SFRS(I) 15 in Singapore).
- The review confirmed that IFRS 15 is generally functioning as intended, successfully providing users of financial statements with improved information about an entity’s revenue.
- A comprehensive project summary and feedback statement detailing the PIR findings will be published in the third quarter of 2024.
Source: IFRS Foundation, 23 July 2024.