EFRAG continues to progress the development of its SME standards, one that listed SMEs are required to use (LSME) and the other that non-listed SMEs can voluteer to use (VSME). EFAA has been urging EFRAG to further simplify the draft VSME, especially the language. EFAA has been providing comments on the draft VSME to EFRAG staff and their SR TEG. The SRB had its last detailed discussion of the VSME in its meeting of 24-25 October 2023 and EFAA is pleased to see the language has been simplified. On 20 October 2023 EFRAG held a workshop with SMEunited members to discuss the state of play with VSME. Read more here.
While there are few listed SMEs, the LSME assumes heightened importance since it will serve as a cap on the amount of information ESRS can require for value chain reporting: EFAA would prefer the cap to be that of the less burdensome VSME. At its meeting of 17 October 2023, EFRAG's SR TEG approved the draft LSME for the SRB’s consideration. At its meeting of 24-25 October 2023, the SRB had a final detailed discussion of the LSME. It is expected the LSME and VSME, together with its building blocks approach, will be publicly exposed for 120 days starting in late November 2023.