The International Financial Reporting Standard for Small and Medium sized Entities – or IFRS for SMEs – should considerably ease the financial reporting burden for businesses which do not have public accountability.

IFRS for SMEs can be used by most businesses (depending on jurisdiction) who publish general purpose financial statements but do not have public accountability – approximately 95% of all businesses. IFRS for SMEs is considerably less complex than full IFRS, making financial statements more user friendly and more cost-effective to produce.

There are a number of potential benefits of adopting IFRS for SMEs, including:

  • reducing compliance costs;
  • making financial statements less complex and more user friendly;
  • improving access to international funding, currently a critical issue for many businesses;
  • enhancing the comparability of financial statements.