Exposure Draft on Third edition of the IFRS for SMEs Accounting Standard

IFRS for SMEs Accounting Standards are applied for general purpose financial statements of small companies, primarily; small and medium-sized entities (SMEs), private entities and non-publicly accountable entities, which is required or permitted in 86 jurisdictions across the globe. This Standard is based on full IFRS with modifications to reflect the needs of users of SMEs’ financial statements and cost-benefit considerations. It focuses on the information needs of lenders, creditors and other users of SME financial statements who are interested primarily in information about cash flows, liquidity and solvency.  

In 2009, the International Accounting Standards Board (IASB) issued the first edition of International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs Accounting Standards). The IASB maintains the SMEs Standards through periodic review and proposes amendments by publishing an omnibus exposure draft. In developing these exposure drafts, it considers new and amended IFRS Accounting Standards as well as issues brought to its attention regarding the application of the Standard. 

In 2015, the IASB completed its first comprehensive review of the Standard. It issued 2015 Amendments to the IFRS for SMEs and a second edition of the Standard, incorporating the 2015 amendments, which became effective in 2017. 

In 2019, the IASB conducted its second comprehensive review of the SMEs Standard, in line with the objective of commencing a comprehensive review approximately two years after the effective date of the amendments to the SMEs Standard resulting from a previous comprehensive review. As part of this second comprehensive review, the IASB published Request for Information Comprehensive Review of the IFRS for SMEs Standard as a first step in its second comprehensive review and consulted with the SME Implementation Group (SMEIG), an advisory body to the IASB. The objective of the Request for Information was to seek views on whether and, if so, how aligning the SMEs Standard with new and amended full IFRS Accounting Standards in the scope of the review to better serve users of financial statements prepared applying the SMEs Standard without causing undue cost or effort for SMEs.

After considering the feedback on the Request for Information and the recommendations of the SMEIG, the IASB is proposing amendments to the IFRS for SMEs Accounting Standard set out in the following Exposure Draft: 

  • Third edition of the IFRS for SMEs Accounting Standard 

Though India will not be directly affected with changes happening in IFRS for SMEs Standards, however, with the view to contribute to standard setting at international level, the Exposure Draft of the third edition of the IFRS for SMEs Accounting Standard issued by the IASB. 

How to Comment:

Comments on the abovementioned ED may be submitted through any of the following modes:



Click on "Submit a comment letter" below (Preferred method)        



Comments can be sent to: commentsasb@icai.in    



Secretary, Accounting Standards Board,    

The Institute of Chartered Accountants of India,    

ICAI Bhawan, Post Box No. 7100,     

Indraprastha Marg, New Delhi 110 002    

Further clarifications on this ED may be sought by e-mail to asb@icai.in.   

Comment letter deadline

The Exposure Draft is open for comment until 31st December, 2022

Due process documents
Exposure Draft on Third edition of the IFRS for SMEs Accounting Standard  [PDF]