IFRS for SMEs: New Educational Module on Section 12 Fair Value Measurement

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

Brought to you by SA Accounting Academy: In terms of the third edition of the IFRS for SMEs Accounting Standard issued in February 2025, the IFRS Foundation has published a new educational module to support the application of Section 12 regarding Fair Value Measurement.

This module, prepared by the International Accounting Standards Board (IASB) technical staff, provides guidance on the requirements for measuring fair value and the associated disclosure obligations. It specifically addresses fair value measurements likely to be encountered by small and medium-sized entities (SMEs) that do not have public accountability, as defined in Section 1 of the Standard.

While the IFRS for SMEs Accounting Standard permits or requires the measurement of certain assets and liabilities at fair value, the reporting entity remains responsible for compliance. Where an SME appoints a third-party valuation specialist, the entity must ensure that the resulting valuation adheres to the specific requirements set out in Section 12.

The module includes the following components:

  • Detailed support for measuring fair value in accordance with Section 12;
  • Guidance on required disclosures for fair value measurements;
  • A comparison between Section 12 and the related full IFRS Accounting Standards; and
  • Practical focus on scenarios common to the SME environment.

Click here to download the IFRS for SMEs Educational Module 12.

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

  • For yourself: You must update your technical knowledge of the Section 12 fair value hierarchy and disclosure requirements to ensure accurate financial reporting under the 2025 Standard.
  • For your business: Your practice must implement stricter review procedures for third-party valuation reports to ensure they meet the specific criteria outlined in the IFRS for SMEs Accounting Standard.
  • For your clients: You must notify clients that they retain primary responsibility for fair value measurements and must provide more detailed disclosures as required by the third edition.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-ifrs-for-smes-educational-module-12

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