IFRS for small- and medium-sized entities

What is the ‘IFRS for small and medium-sized entities’ (SMEs)?

  • A standard for entities in countries that have no national GAAP.
  • An alternative IFRS standard in those countries that have national GAAP.
  • A standard for entities that are not of the size nor have the resources to adopt full IFRS.

What are the main features of the IFRS for small and medium-sized entities?

  • Volume of accounting guidance reduced by more than 85% compared with the full IFRS.
  • Detailed explanation and requirements relating complex circumstances not usually applicable to SMEs largely omitted
  • Little implementation guidance
  • Reduced disclosure requirements
  • Simplified recognition and measurement requirements
  • Self-contained – no reference back to full IFRS

What are the benefits of adopting IFRS for small and medium-sized entities?

An IFRS for SMEs has clear benefits for investors, lenders and those seeking to raise finance through the transparency afforded by a consistently applied global set of financial reporting standards. It will also ease transition to full IFRS for growing entities once they become publicly accountable.


How PwC can help

Contact your local PwC office to see how we can help. In addition, PwC has a number of practical guidance and tools (illustrative financial statements, comparison with ‘full’ IFRS, pocket guide, checklists and more) to help with the application of the IFRS for SMEs standard. See our materials below, or visit our full publications library.