The IFRS for SMEs has simplifications that reflect the needs of users of SMEs’ financial statements and cost-benefit considerations. Compared with full IFRS, it is less complex in a number of ways:
- topics that are not relevant for SMEs are omitted
- many of the principles for recognising and measuring assets, liabilities, income and expenses in full IFRS are simplified
- significantly fewer disclosures are required
- the IFRS for SMEs has been written in clear, easily translatable language
- to further reduce the burden for SMEs, revisions are not expected to be made more frequently than once every three years
It is intended for entities that do not have public accountability as defined in the IFRS for SMEs.