The IASB issued “a major update” to IFRS for SMEs, an accounting standard required or permitted in 85 jurisdictions, a news release said.
Following a comprehensive review of the standard, the IASB introduced:
- 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.
The update will “improve the information provided” to users of small- and medium-size entities’ (SMEs’) financial statements, according to a statement from Andreas Barckow, chair of the IASB, while maintaining the standard’s simplicity.
IFRS for SMEs was issued in 2009 to address the global demand for a simplified accounting standard for SMEs. This updated version is the standard’s third edition.
This update is effective for annual periods beginning on or after 1 January 2027, with early application permitted. The new edition is accessible online for those with an IFRS digital subscription.
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