IFRS accounting standards

Synopsis

The IFRS for SMEs is a standalone document other than one fallback option to use IAS 39 for financial instruments rather than the relevant sections of the IFRS for SMEs. It simplifies the accounting guidance included in full IFRS by:

• Excluding topics which are less relevant to SMEs, such as segment and interim reporting;
• Omitting the complex option where there is choice, such as the revaluation model for property, plant and equipment;
• Simplifying recognition and measurement criteria, for example  borrowing and development costs are all expensed in the period in which they are incurred; and
• Reducing disclosure requirements, such that the IFRS for SMEs requires approximately one tenth of the disclosures required by full IFRS.

Who can use the standard?

The IFRS is intended for use by small and medium sized entities (SMEs). These are defined within the standard as entities that:

• do not have public accountability, and
• publish general purpose financial statements for external users.

The IASB have deferred the decision on which entities are required or permitted to use the IFRS for SMEs to the legislative and regulatory authorities and standard-setters in individual jurisdictions. Accordingly there is no effective date for the standard, as this is dependent upon local adoption.

Which version of the standard?

'Which version of the standard?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS. There is no effective date for the IFRS for SMEs, although for those entities that have already adopted it, the 2015 updates do have an effective date.

For the latest version of the standard, or where amendments are to be adopted early, refer to IFRS for SMEs (2015).

Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

Current proposals

1. The IASB has issued a Request for Information as a first stage in its second comprehensive review of the IFRS for SMEs. Views are sought as to whether, and how, the IFRS for SMEs should be updated to reflect amendments to full IFRS.
2. The IASB has begun to gather evidence to decide whether to start a project to develop a proposal to allow subsidiaries that qualify as SMEs to apply the recognition and measurement requirements of full IFRS but prepare disclosures as required by the IFRS for SMEs.

Other resources

Factsheets:

• IFRS for SMEs: The Basics

FAQs

IFRS for SMEs: Who can use it and how does it differ from full IFRSs?
This series of FAQs from the Financial Reporting Faculty outlines which entities are eligible to use the IFRS for SMEs and highlights some of the key differences to full IFRSs. Published July 2018

eBooks:

• IFRS publications and eBooks  - SME Guidance

Articles:

• Spot the difference

Other:

• IFRS for SMEs Illustrative Financial Statements and Presentation and Disclosure Checklist

This page was last updated 21 March 2019.