Why we need the 3rd edition of the IFRS for SMEs Accounting Standard
Updated: Feb 18
The IFRS for SMEs (International Financial Reporting Standards for Small and Medium-sized Entities) is a set of accounting standards designed specifically for small and medium-sized entities.
The first edition of the IFRS for SMEs was published in 2009, and the second was published in 2015. The third edition was published in 2021 and includes several updates and improvements.
Here are some reasons why the third edition of the IFRS for SMEs was necessary:
Keep up with changes in accounting practices: The accounting landscape is constantly evolving, and the third edition of the IFRS for SMEs includes updates to keep up with these changes. For example, it includes guidance on how to account for cryptocurrencies and other digital assets, which have become increasingly popular in recent years.
Address implementation issues: The first two editions of the IFRS for SMEs highlighted several implementation issues that needed to be addressed. The third edition aims to address these issues by providing clearer guidance and simplifying certain requirements.
Increase clarity and consistency: The third edition of the IFRS for SMEs includes several improvements that aim to increase clarity and consistency in the standard. For example, it includes a more structured presentation of the standard and clearer explanations of certain requirements.
Make it easier to use: The third edition of the IFRS for SMEs includes several improvements that aim to make the standard easier to use. For example, it includes more illustrative examples, a glossary of terms, and a more user-friendly forma