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The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) is designed to apply to all entities that do not have public accountability.

The International Accounting Standards Board (IASB) developed the IFRS for SMEs in recognition of the cost and difficulty to relatively small private entities of preparing fully compliant IFRS information. The IASB also recognised that users of private entity financial statements may have a different focus to those interested in publicly listed companies.

In addition, the IFRS for SMEs contains fewer disclosure requirements in a dramatically shorter document, compared to that of the IFRS, and therefore appeals to both the users and preparers of financial statements.

The IFRS for SMEs standard is potentially available for immediate use, however it is for the relevant standard setters and authorities in each country to decide which entities are permitted and/or required to apply IFRS for SMEs.

In May 2015, the IASB completed a comprehensive review of the IFRS for SMEs and made limited amendments to the Standard. The complete revised version of the IFRS for SMEs was issued in December 2015. PKF International prepared an accounting update for the amendments. The International Accounting Standards Board has published a Request for Information (RfI) which is the first step in its second comprehensive review of the IFRS for SMEs Standard. As part of the first phase of the 2019 Review, the Board is developing a Request for Information requesting views on how, and if,  the IFRS for SMEs Standard should be updated to take account of full IFRS Standards and amendments not currently incorporated into the IFRS for SMEs Standard. Visit ifrs.org for more on the second comprehensive review.

In line with the amendments issued by the IASB, PKF International prepared illustrated disclosures for a compliant set of financial statements with IFRS for SMEs.