The IFRS for SMEs Standard reflects five types of simplifications from full IFRS Standards:
- some topics in full IFRS Standards are omitted because they are not relevant to typical SMEs;
- some accounting policy options in full IFRS Standards are not allowed because a more simplified method is available to SMEs;
- many of the recognition and measurement principles that are in full IFRS Standards have been simplified;
- substantially fewer disclosures are required; and
- the text of full IFRS Standards has been redrafted in ‘plain English’ for easier understandability and translation.
The IFRS for SMEs Standard includes an option for entities to apply the recognition and measurement requirements of IAS 39 Financial Instruments: Recognition and Measurement. For information on this, please click here.