What is the new IFRS for SMEs Accounting Standard?

It's a simplified, self-contained accounting standard developed by the IFRS Foundation specifically for small and medium-sized enterprises worldwide.

How does the IFRS for SMEs standard differ from full IFRS?

It removes topics irrelevant to SMEs, simplifies recognition/measurement, and reduces disclosure obligations by about 90%.

Who can use the IFRS for SMEs Accounting Standard?

Jurisdictions decide which entities can use it, generally excluding those with public accountability.

Home / Business and Economy / SMEs Get Simplified Accounting Standard

SMEs Get Simplified Accounting Standard

28 Nov

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Summary

IFRS released a simplified accounting standard for SMEs globally.
The standard simplifies processes and reduces disclosure obligations by 90%.
Updates are scheduled triennially to minimize SME adaptation efforts.

The International Financial Reporting Standards (IFRS) Foundation has published a new accounting standard specifically designed for small and medium-sized enterprises (SMEs) globally. This self-contained standard is less than 330 pages and simplifies recognition and measurement processes compared to full IFRS standards.

Key adjustments include immediate expensing for all borrowing and development costs, simplified goodwill amortization, and a reduced disclosure burden of around 90%. The language is straightforward for easier international translation and adoption. Updates are planned triennially to minimize adaptation efforts for SMEs.

Jurisdictions can adopt this standard independently of full IFRS, with each deciding which entities may apply it, generally excluding those with public accountability. The IFRS Foundation has also initiated a search for a new managing director.

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