The International Financial Reporting Standards Foundation has made available the 2025 IFRS for SMEs Accounting Standard, a self-contained accounting framework intended for small and medium-sized entities, which it estimates represent more than 95% of companies worldwide. The Standard is positioned as a less complex alternative to full IFRS Accounting Standards and many national GAAPs, with simpler recognition and measurement requirements and substantially reduced disclosure. Compared with full IFRS Accounting Standards, the Standard omits topics deemed not relevant to SMEs such as earnings per share, interim financial reporting and segment reporting, and simplifies several accounting treatments including amortising goodwill, expensing all borrowing and development costs, permitting the cost model for associates and jointly controlled entities, and allowing “undue cost or effort” exemptions for specific requirements. It also requires significantly fewer disclosures, described as roughly a 90% reduction, is written in plain English, and is expected to be revised no more than once every three years. The Standard is available for any jurisdiction to adopt regardless of whether it has adopted full IFRS Accounting Standards, with each jurisdiction deciding which entities use it, subject to the International Accounting Standards Board restriction that entities with public accountability should not apply it.
International Financial Reporting Standards Foundation 2025-11-27
International Financial Reporting Standards Foundation publishes the 2025 IFRS for SMEs Accounting Standard
The International Financial Reporting Standards Foundation released the 2025 IFRS for SMEs Accounting Standard for small and medium-sized entities as a simpler alternative to full IFRS. It omits topics irrelevant to SMEs, simplifies accounting treatments, and reduces disclosure requirements by about 90%. The Standard is available for adoption by any jurisdiction, excluding entities with public accountability.