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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:

  • the issuance of the third edition of the IFRS for SMEs Accounting Standard;
  • resources to support implementation of the Standard; and
  • instructions for submitting implementation issues.

Issuance of the third edition of the IFRS for SMEs Accounting Standard

The IASB issued the third edition of the IFRS for SMEs Accounting Standard on 27 February 2025. The third edition is accompanied by the Basis for Conclusions and Illustrative Financial Statements. The IASB also published a Project Summary and Feedback Statement and Effects Analysis.

In addition to PDFs of the Standard documents, users can also access the HTML of the third edition of the Standard and its Basis for Conclusions from the IFRS for SMEs Accounting Standards Navigator.

Major changes to the Standard include:

  • a revised Section 2 Concepts and Pervasive Principles, which will help SMEs develop accounting policies for areas where the Standard does not specify requirements;
  • introduction of a single basis of assessing control in Section 9 Consolidated and Separate Financial Statements;
  • new disclosure requirements in Section 11 Financial Instruments that will provide information about an SME’s credit and liquidity risk and expected cash flows;
  • a new Section 12 Fair Value Measurement, which brings together all the fair value measurement requirements;
  • a revised Section 19 Business Combinations and Goodwill, which introduces the acquisition method of accounting; and
  • a revised Section 23 Revenue from Contracts with Customers, which introduces a single comprehensive framework for revenue recognition and measurement.

Resources to support implementation of the Standard

The Standard is also accompanied by resources to help with implementation.

Figure 1—Implementation support

Educational modules

Each section of the Standard has a corresponding educational module. The 35 educational modules are designed for anyone applying the Standard. The modules include illustrative examples and case studies to test knowledge.

The IASB technical staff is updating the modules to align with the third edition of the Standard—prioritising the sections with significant changes. The educational modules can be accessed from the supporting materials page.

Webcast and podcast series

The webcast series consists of short presentations that support the educational modules. The first webcast provides an overview of the second comprehensive review of the Standard and main changes to the Standard.

The IFRS for SMEs podcast series was launched this year and will inform stakeholders about key updates and insights regarding the Standard. The second and latest episode of the podcast features Blaise Colyvas, a SMEIG member and preparer, who provides his insights on the benefits of the Standard.

The webcasts and podcasts can be accessed from the supporting materials page.

Submitting implementation issues

SMEs and other interested parties can submit issues with implementing the Standard on the supporting materials page.

Submitted implementation issues are dealt with by staff in one of two ways:

  1. Staff refers the issue for consideration by the SME Implementation Group (SMEIG) if it seems likely to meet the criteria in paragraph 20 of the Terms of Reference and Operating Procedures for the SMEIG. The SMEIG will then consider whether to develop non-mandatory implementation guidance to address the issue in the form of questions and answers (Q&As).
  2. Issues that do not meet the criteria in the SMEIG Terms of Reference will be considered by staff when updating educational material or will be considered during the next periodic review, if applicable.

The criteria in the SMEIG Terms of Reference state that in order to be considered for Q&A guidance, the issue should be pervasive, that unintended or inconsistent implementation has occurred or is likely to occur because of lack of clarity in the Standard and that the SMEIG can reach a consensus on the appropriate treatment on a timely basis.