IASB Releases Educational Module 29 on Income Tax for IFRS for SMEs

Posted 25 August 2026 Written by Acts Online
Category Accounting & Financial Reporting

Brought to you by SA Accounting Academy: In terms of the financial reporting framework prescribed under Regulation 27 of the Companies Act, No. 71 of 2008, the IFRS Foundation and the International Accounting Standards Board (IASB) technical staff have released a new educational module supporting the application of Section 29 (Income Tax) of the third edition of the IFRS for SMEs Accounting Standard issued in February 2025.

The module provides detailed guidance for qualifying entities without public accountability preparing general purpose financial statements in accordance with Section 1 and Section 29 of the Standard. The publication outlines the accounting treatment for current and deferred tax, recognition thresholds, measurement principles, and presentation requirements.

Key areas addressed in the educational publication include:

  • Practical application guidance and calculation examples for Section 29 (Income Tax) compliance under the third edition;
  • Step-by-step methodology for determining temporary differences, deferred tax assets, and deferred tax liabilities;
  • Comparative analysis highlighting differences between Section 29 of the IFRS for SMEs Standard and full IFRS Accounting Standards (specifically IAS 12 Income Taxes); and
  • Illustrative disclosure notes for qualifying small and medium-sized entities.

Click here to download the IFRS for SMEs Educational Module 29: Income Tax.

What this means for you, your business, or your clients

  • For yourself: Accounting practitioners and auditors must review the third edition’s deferred tax recognition criteria and practical examples to maintain technical compliance during financial statement compilation and review engagements.
  • For your business: Audit and accounting firms must update working paper templates, income tax calculation schedules, and training programmes to align with the revised February 2025 IFRS for SMEs technical guidance.
  • For your clients: SME corporate clients preparing financial statements under IFRS for SMEs must ensure their tax computations and deferred tax balance reconciliations conform to Section 29 requirements prior to year-end financial reporting.

Originally published at https://accountingacademy.co.za/news/read/ifrs-for-smes-educational-module-29-income-tax

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