IASB issues a major update to the IFRS for SMEs Accounting Standard

The International Accounting Standards Board (IASB) has today issued a major update to the IFRS for SMEs Accounting Standard, which is currently required or permitted in 85 jurisdictions. This Standard aims to balance the information needs of lenders and other users of SMEs’ financial statements with the resources available to SMEs. The Standard defines SMEs as entities without public accountability that prepare general purpose financial statements.

The update of this Standard is the outcome of a periodic comprehensive review of the Standard. Highlights include:

• a revised model for revenue recognition;
• bringing together the requirements for fair value measurement in a single location; and
• updating the requirements for business combinations, consolidations and financial instruments.

Andreas Barckow, Chair of the IASB, said:

The update to the IFRS for SMEs Accounting Standard will improve the information provided to users of SMEs’ financial statements while maintaining the simplicity of the Standard.

This update is effective for annual periods beginning on or after 1 January 2027, with early application permitted.

The IFRS for SMEs Accounting Standard was issued in 2009 to address the global demand for a simplified Accounting Standard for SMEs. This updated version is the third edition of the Standard.

Overview video

In this short video, IASB Chair Andreas Barckow introduces the third edition of the IFRS for SMEs Accounting Standard.

Access the documents

Online access

The new edition is now available online. IFRS Digital subscribers have access to the full third edition of the IFRS for SMEs Accounting Standard, including the Basis for Conclusions and Illustrative Financial Statements. Registered users of IFRS.org can access the Standard only. 

• The third edition of the IFRS for SMEs Accounting Standard
• Basis for Conclusions and Illustrative Financial Statements
• Project Summary
• Feedback Statement and Effects Analysis
• The recently launched podcast series on the Standard

Print edition

The premium content available to IFRS Digital subscribers will soon be offered as a two-volume printed set. Registering interest will trigger a notification once the printed volumes are available to order.