• IFRS for SMEs Accounting Standard

Two versions of the IFRS for SMEs Accounting Standard are currently available.

The 2015 Issued Standard includes all amendments issued up to and including 1 June 2015. The 2015 Issued Standard is effective for accounting periods beginning on or after 1 January 2017.

The 2025 Issued Standard was issued in February 2025 and is effective for accounting periods beginning on or after 1 January 2027 (earlier application is permitted).

Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).

The IFRS for SMEs Accounting Standard is a standalone document. It simplifies the accounting guidance included in full IFRS by:

• excluding topics which are less relevant to SMEs, such as segment and interim reporting;
• omitting the complex option where full IFRS Accounting Standards provide a choice, such as the revaluation model for intangible assets;
• simplifying recognition and measurement criteria, for example borrowing costs are all expensed in the period in which they are incurred; and
• reducing disclosure requirements, such that the IFRS for SMEs requires approximately one tenth of the disclosures required by full IFRS Accounting Standards.

Who can use the Standard?

The Standard is intended for use by small and medium sized entities (SMEs). These are defined within the Standard as entities that:

• do not have public accountability, and
• publish general purpose financial statements for external users.

The IASB has deferred the decision on which entities are required or permitted to use the IFRS for SMEs Accounting Standard to the legislative and regulatory authorities and standard-setters in individual jurisdictions.

Accordingly, the effective date for the Standard, is dependent upon local adoption.