In June 2013, the International Accounting Standards Board (the Board) issued guidance to help micro-sized entities apply the 2009 IFRS for SMEs.


Over 80 jurisdictions have either adopted the IFRS for SMEs Standard or stated a plan to do so within the next few years. In some of these jurisdictions the SMEs Standard is being used by very small companies with just a few employees. The Board was asked and agreed to develop guidance suitable for micro-sized entities currently applying the SMEs Standard and also those considering doing so in the future.


The guidance was developed with input from the SME Implementation Group (SMEIG). It extracts from the SMEs Standard only those requirements that are likely to be necessary for a typical micro-sized entity, without modifying any of the principles for recognising and measuring assets, liabilities, income and expenses. In a few areas, it also contains further guidance and illustrative examples to help a micro-sized entity to apply the principles in the SMEs Standard.

The guidance contains cross-references to the SMEs Standard for matters not covered by the guidance. Consequently, having applied the guidance, an entity's notes to the financial statements and auditor's report could refer to conformity with the Standard because this guidance does not modify the requirements of the Standard.

Updates to the guidance after the 2015 Comprehensive review 

In 2015, the Board made limited amendments to the Standard after a comprehensive review. The amendments are effective for annual periods beginning on or after 1 January 2017. We do not expect these amendments to have a significant effect on a micro-sized entity's financial reporting practices and financial statements.

We are currently assessing the benefits of an electronic solution to updating the micros-sized entities guide for the 2015 amendments.

The Guidance is free to download for private, non-commercial use. You need to be an eIFRS Basic user to access the SMEs Standard; the registration is free of charge. eIFRS Basic users, eIFRS Professional users and registered users of our web shop can access the material with their username and password. You can log in at the top of the page.

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