IFRS for SMEs: New Educational Module on Business Combinations and Goodwill

Posted 06 October 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The IFRS Foundation has published a new educational resource to support the implementation of the third edition of the IFRS for SMEs Accounting Standard.

In terms of the third edition of the IFRS for SMEs Accounting Standard, which was issued by the International Accounting Standards Board (IASB) in February 2025, the Foundation has released Module 19. This module is specifically designed to support the requirements for the accounting and reporting of business combinations and goodwill under Section 19 of the Standard.

The educational material was prepared by the IASB technical staff and forms part of a broader package of resources intended to assist stakeholders in learning about, applying, or reading financial statements prepared under the updated Standard. Key features of the module include:

  • Detailed guidance on the application of Section 19: Business Combinations and Goodwill;
  • A comprehensive comparison between the IFRS for SMEs Accounting Standard and the related full IFRS Accounting Standards; and
  • Practical implementation support for entities that do not have public accountability as defined in Section 1: Small and Medium-sized Entities.

The IFRS for SMEs Accounting Standard is intended for use by small and medium-sized entities that publish general purpose financial statements. This module ensures that practitioners can navigate the transition to the third edition of the Standard with specific focus on the complexities of business combinations.

Click here to download Module 19: Business Combinations and Goodwill.

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

  • For yourself: You must update your technical proficiency regarding the recognition and measurement of goodwill and business combinations as prescribed in the 2025 third edition of the IFRS for SMEs Accounting Standard to ensure continued professional competence.
  • For your business: Your firm should review and update internal accounting templates and audit checklists to align with the revised Section 19 requirements for all SME engagements following the 2025 update.
  • For your clients: You should advise SME clients involved in mergers or acquisitions on the specific reporting, disclosure, and valuation obligations for goodwill to ensure their financial statements remain compliant with the latest regulatory framework.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-ifrs-for-smes-educational-module-19

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