The International Accounting Standards Board (IASB) has published an Exposure Draft proposing narrow scope amendments to the IFRS for SMEs Accounting Standards.

The proposed amendments introduce an optional exemption from preparing consolidated financial statements for eligible SMEs that are intermediate parent entities. This exemption would apply when the SME’s ultimate (or intermediate) parent is an investment entity that prepares financial statements in accordance with full IFRS Accounting Standards and measures its subsidiaries at fair value through profit or loss in accordance with IFRS 10 ‘Consolidated Financial Statements’.

Comments may be submitted to the IASB by 9 September 2026 or shared with the Malaysian Accounting Standards Board by 10 August 2026. The revised Malaysian Private Reporting Standards (MPERS) which will be effective 1 January 2027 is fully aligned with the 2025 IFRS for SMEs Accounting Standards issued by the IASB, except for changes mainly relating to scope applicability. Entities in Malaysia should keep track of whether changes to the IFRS for SMEs Accounting Standard are adopted into MPERS.

MFRS 18 ‘Presentation and Disclosure in Financial Statements’ was issued to replace MFRS 101 ‘Presentation of Financial Statements’. MFRS 18 is fully aligned with IFRS 18 and is effective for annual reporting periods beginning on or after 1 January 2027. Listen to the latest episode of PwC’s IFRS Talks for an overview of the IFRS Interpretations Committee’s June 2026 meeting, which discussed the following accounting issues arising from the application of IFRS 18:

• Management-defined performance measures (“MPMs”) - Hypothetical Income and Expenses
• MPMs - Public Communications
• Entities with specified main business activity (“SMBA”)
• Assessment of SMBA for a manufacturer-lessor
• Labels of subtotals and matters relating to the presentation of expenses