For many SMEs, the biggest change in the updated IFRS for SMEs is not how much of a company is owned, but who actually controls it. The revised Section 9 introduces a broader definition of control that looks beyond voting rights and focuses on who has the power to direct key decisions, who is exposed to the risks and rewards of the business, and who can use that power to influence outcomes. As a result, family groups, trust structures, and companies with dispersed shareholders may need to reassess whether consolidation is required, even where no single party holds a majority stake.

Group financial statements can feel overwhelming—like juggling family dynamics on paper. But Section 9 of the IFRS for SMEs makes it clearer than you think.

This article breaks down the key rules on when to prepare consolidated, separate, or combined statements, and what “control” really means in practice. For CIBA members, it's not just about compliance—it's about helping clients make sense of their business as a whole.