IFRS Foundation Issues Educational Module for Section 2 of IFRS for SMEs (Third Edition)

Posted 21 July 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The IFRS Foundation has published a new educational module designed to assist in the application of Section 2 of the third edition of the IFRS for SMEs Accounting Standard.

In accordance with the IFRS for SMEs Accounting Standard (Third Edition), which was issued in February 2025, the International Accounting Standards Board (IASB) technical staff has developed this module to focus on Section 2: Concepts and Pervasive Principles. This section outlines the concepts that underlie financial statements prepared under the Standard and provides the pervasive principles that guide the application of accounting policies.

The educational module provides the following resources for practitioners:

  • Reproduction of the official text of the IFRS for SMEs Accounting Standard;
  • Explanatory notes and practical examples designed to enhance the understanding of reporting requirements;
  • Identification of significant judgements required when applying the concepts and pervasive principles; and
  • Self-assessment questions to test the application of the Standard’s underlying principles.

The IFRS for SMEs Accounting Standard is intended for entities that do not have public accountability and publish general purpose financial statements for external users, as defined in Section 1 (Small and Medium-sized Entities). This module specifically supports the requirements on the scope of the Standard in accordance with the February 2025 revisions.

Click here to download the IFRS for SMEs Educational Module 2: Concepts and Pervasive Principles.

What this means for you, your business, or your clients

  • For yourself: Use the module to update your technical knowledge of the February 2025 revisions to Section 2, specifically regarding the pervasive principles used in financial reporting for non-publicly accountable entities.
  • For your business: Ensure that the firm’s internal training materials and audit or independent review checklists for SMEs are updated to reflect the guidance and judgements outlined in this new IASB technical staff module.
  • For your clients: Advise SME clients on the application of the third edition of the Standard to ensure their general purpose financial statements remain compliant with the updated concepts and pervasive principles in future reporting periods.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-ifrs-for-smes-educational-module-2

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