Supporting materials for the IFRS for SMEs Standard

About the IFRS for SMEs Standard

The IFRS for SMEs Standard is a self-contained Standard (fewer than 250 pages) designed to meet the needs and capabilities of small and medium-sized entities (SMEs), which are estimated to account for more than 95 per cent of all companies around the world.

Compared with full IFRS Standards (and many national GAAPs), the IFRS for SMEs Standard is less complex in a number of ways:

  • Topics not relevant for SMEs are omitted; for example earnings per share, interim financial reporting and segment reporting.
  • Many principles for recognising and measuring assets, liabilities, income and expenses in full IFRS Standards are simplified. For example, amortise goodwill; recognise all borrowing and development costs as expenses; cost model for associates and jointly-controlled entities; and undue cost or effort exemptions for specific requirements.
  • Significantly fewer disclosures are required (roughly a 90 per cent reduction).
  • The Standard has been written in clear, easily translatable language.
  • To further reduce the burden for SMEs, revisions are expected to be limited to once every three years.

The SMEs Standard is available for any jurisdiction to adopt, whether or not it has adopted full IFRS Standards. Each jurisdiction must determine which entities should use the Standard. The Board's only restriction is that entities that have public accountability should not use it.

Small companies and other interested parties can submit implementation issues on the IFRS for SMEs for consideration. Submitted issues will be dealt with by staff in one of two ways:

  1. Staff will refer the issue for consideration by the SME Implementation Group (SMEIG) if they think the issue is likely to meet the criteria in paragraph 15 of the Terms of Reference and Operating Procedures for the SMEIG. For these issues the SMEIG will then consider whether to develop non-mandatory implementation guidance to address the issue in the form of questions and answers (Q&As).
  2. Other issues will be considered by the staff when updating our education material or held for consideration during the next periodic review of the IFRS for SMEs, as applicable.

The paragraph 15 criteria referred to above sets out that an issue should be pervasive, that unintended or inconsistent implementation has or is likely to occur because of lack of clarity in the Standard, and that the SMEIG can reach a consensus on the appropriate treatment on a timely basis. 

Submit an issue to the IFRS for SMEs team

Latest news

IFRS for SMEs Update

The IFRS for SMEs Update is a round up of all the most recent information regarding the SMEs Standard.

The Update is published on a regular basis, with news about adoptions, resources, and implementation guidance, and you can read it here in English or Spanish.

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