This is to inform our clients that the International Accounting Standards Board (IASB) has issued the third edition of the IFRS for SMEs Accounting Standard in February 2025.
This update follows the second comprehensive review of the Standard and introduces significant revisions to align, where appropriate, with recent developments in full IFRS Accounting Standards while maintaining simplicity for small and medium-sized entities.

Key Changes Include:

• Updated revenue recognition principles aligned with IFRS 15
• Revised guidance on financial instruments
• A new section on fair value measurement
• Updates to consolidation and control assessments
• Revised business combination requirements
• Additional disclosure requirements

The revised Standard is effective for annual reporting periods beginning 1 January 2027, with early adoption permitted.

What This Means for You

Entities currently reporting under IFRS for SMEs may need to:

• Review revenue recognition policies
• Assess financial instrument classifications
• Update accounting systems and disclosures
• Plan for transition adjustments

We are actively reviewing the new requirements and will be engaging with clients to assess the impact on financial reporting, audit processes, and governance frameworks.