The IASB has issued the third edition of the IFRS for SMEs Accounting Standard, introducing significant updates to financial instruments and more. Here's the lowdown on what you need to know!
Key Points
•📅 Release Date: Third edition issued in February 2025
•📊 Spotlight: Major changes in Section 11 Financial Instruments
•🔄 Alignment Approach: Principles of relevance, simplicity, and faithful representation
•🛠️ SME Implementation Group: New members announced
•🌐 Global Event: Upcoming World Standard-setters Conference 2025
📜 Overview
The IASB issued the third edition of the IFRS for SMEs Accounting Standard in February 2025. This update reflects improvements from the second comprehensive review, ensuring the principles of relevance, simplicity, and faithful representation are upheld. Key changes in Section 11 include the recognition, measurement, and disclosure requirements for financial instruments.
🔍 Spotlight on Section 11
Section 11 sets out the recognition, measurement, and disclosure requirements for financial instruments. By applying the alignment principles to IFRS 9, the IASB retained the incurred loss model for the impairment of financial assets measured at amortised cost and the hedge accounting and derecognition requirements. These updates aim to balance simplicity and faithful representation with the costs and benefits.
👥 SME Implementation Group
The IASB has updated the membership of the SME Implementation Group (SMEIG), bringing in fresh perspectives to support the implementation of the Standard.
🌐 World Standard-setters Conference 2025
Mark your calendars for the upcoming World Standard-setters (WSS) Conference in 2025. This event will gather experts from around the globe to discuss and share insights on the latest developments in accounting standards.
