The IFRS for SMEs Accounting Standard Update is a staff summary of news, events and other information about the IFRS for SMEs® Accounting Standard and related SME activities. The staff summary has not been reviewed by the International Accounting Standards Board (IASB).
This edition of the IFRS for SMEs Accounting Standard Update includes:
- an overview of Section 7 Statement of Cash Flows in the third edition of the Standard;
- an update on outreach activities;
- resources published to support implementation of the Standard; and
- the upcoming World Standard-setters (WSS) Conference 2025.
Topic of the quarter—Spotlight on Section 7 Statement of Cash Flows
Section 7 Statement of Cash Flows specifies the requirements for presenting a statement of cash flows.
Information about an SME’s cash flows helps users to assess the ability of the SME to generate future cash flows. This information also helps users to assess management’s stewardship of the SME’s economic resources by explaining how an SME has obtained and spent cash, including information about its borrowings, repayments of debt, dividends and other factors that affect liquidity and solvency.
The IASB amended Section 7 in the third edition of the Standard by adding:
- a requirement to disclose a reconciliation of changes in liabilities arising from financing activities, including changes arising from cash flows and non-cash flows; and
- requirements to disclose information about supplier finance arrangements.
These disclosure requirements—together with new requirements in Section 11 Financial Instruments to disclose an analysis of the age of financial assets and a maturity analysis of financial liabilities—respond to feedback that users of SMEs’ financial statements need better information about cash flows and liquidity.
The IASB also updated Module 7 Statement of Cash Flows. The module includes explanations, examples and assessments (including case studies) supporting application of the requirements in Section 7 Statement of Cash Flows.
| Event | Description |
|---|---|
| Accounting Standards Advisory Forum—March 2025 | IASB members and staff provided an overview of the third edition of the Standard.
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| International Forum of Accounting Standard Setters—March 2025 | IASB member and staff provided an overview of the third edition of the Standard and explained how the IASB plans to support implementation.
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| Emerging Economies Group—May 2025 | Staff held an educational session focused on changes to the Standard.
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| South African Institute of Chartered Accountants—May 2025 | IASB member gave a presentation and held a panel discussion on the third edition of the Standard. |
| Instituto Nacional de Contadores Públicos de Columbia—August 2025 | Staff provided an overview of the third edition of the Standard and explained how the IASB plans to support implementation. |
In the fourth quarter of 2025, the IASB plans to present at events:
- in Kuala Lumpur, Malaysia, organised by the Malaysian Accounting Standards Board;
- online, organised by the Association of Chartered Certified Accountants;
- in the Caribbean (location to be announced), organised by the Institute of Chartered Accountants of the Eastern Caribbean;
- in Vienna, Austria, organised by the Centre for Financial Reporting Reform.
Resources to support implementation of the Standard
To support implementation of the third edition of the Standard, the IASB has published these supporting materials:
- the Project Summary and the Feedback Statement and Effects Analysis—these documents were published alongside the Standard.
- the marked-up Standard—a version of the third edition of the Standard showing the changes since the second edition in document markup.
- updated educational modules—these modules are designed to help SMEs apply the Standard and include explanations, examples and assessments. The IASB is in the process of updating the educational modules, prioritising sections with significant changes in the third edition.
To date the IASB has published: - Module 9 Consolidated and Separate Financial Statements;
- Module 12 Fair Value Measurement;
- Module 15 Joint Arrangements;
- Module 23 Revenue from Contracts with Customers; and
- Module 28 Employee Benefits.
- education webcasts—to help SMEs implement the Standard. This webcast series complements the educational modules. To date the IASB has released:
- Webcast 1: Overview of the third edition of the IFRS for SMEs Accounting Standard;
- Webcast 2: Overview of amendments to Section 11 Financial Instruments;
- Section 2 Concepts and Pervasive Principles; and
- Section 7 Statement of Cash Flows.
- a podcast series—providing bite-sized insights into the third edition of the Standard. The January, March and September episodes are available. The IASB is planning to release further podcast episodes in 2025.
In the fourth quarter of 2025, the IASB is planning to publish:
WSS Conference 2025
The WSS Conference is a forum for national standard-setters designed to connect standard-setters from around the world with the IASB and the International Sustainability Standards Board (ISSB). At this forum, participants receive updates on the IFRS Foundation’s projects, share insights on IFRS adoption, meet IASB and ISSB members and staff and network with other national standard-setters.
This year’s WSS Conference will take place on 29–30 September 2025. At this meeting IASB members and staff will explore how the third edition of the IFRS for SMEs Accounting Standard and IFRS 19 Subsidiaries without Public Accountability: Disclosures respond to global financial reporting needs. Participants will learn the benefits of both Standards for the financial reporting ecosystem.
If you are a national standard-setter and your organisation has not received an invitation to the WSS Conference, please contact us.
