IFRS for SMEs - what is it and how is it applied
The IFRS for SMEs Accounting Standard reflects five types of simplifications from the full IFRS Accounting Standards:
- We omit some topics in full IFRS Accounting Standards because they are not relevant to typical SMEs.
- SMEs have access to a simpler method, so they prohibit certain accounting policy options in full IFRS Accounting Standards.
- Full IFRS Accounting Standards have simplified many of the recognition and measurement principles.
- Fewer disclosures are required substantially.
- We have redrafted the text of full IFRS Accounting Standards in 'plain English' to make it easier to understand and translate.
The IFRS for SMEs Accounting Standard includes an option for entities to apply the recognition and measurement requirements of IAS 39 Financial Instruments: Recognition and Measurement.
Source: IFRS.org
Frequently asked questions
What is the IFRS for SMEs?
IFRS for SMEs is a worldwide accounting and financial reporting standard for small- and medium-sized entities. It applies to their general-purpose financial statements and other financial reporting.
Does IFRS 16 apply to SMEs?
IFRS 16 is relevant to entities applying the IFRS for SMEs Standard.
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