IFRS Foundation Releases Educational Module for Section 23 of IFRS for SMEs

Posted 11 December 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The IFRS Foundation has published a technical educational module to facilitate the application of Section 23 of the third edition of the IFRS for SMEs Accounting Standard.

Under the third edition of the IFRS for SMEs Accounting Standard, which was issued by the International Accounting Standards Board (IASB) in February 2025, Section 23 governs the accounting for “Revenue from Contracts with Customers.” The new educational module, developed by IASB technical staff, provides specific guidance on the presentation and recognition requirements for revenue within the SME framework.

The educational material is designed for stakeholders involved in the preparation, audit, or analysis of financial statements for small and medium-sized entities. Key features of the module include:

  • Detailed guidance on the application of Section 23 requirements for revenue recognition;
  • A comparison between the IFRS for SMEs Accounting Standard and the related full IFRS Accounting Standards; and
  • Support for entities meeting the criteria of Section 1 (Small and Medium-sized Entities), specifically those without public accountability that publish general purpose financial statements.

Click here to download the IFRS for SMEs Accounting Standard Educational Module 23.

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

  • For yourself: You must familiarise yourself with the revised revenue recognition principles in Section 23 of the 2025 edition to ensure accurate technical advice and audit procedures.
  • For your business: Your firm should update its internal training materials and compliance checklists to reflect the third edition’s requirements for SME revenue accounting.
  • For your clients: Your SME clients without public accountability will need to assess their existing contract revenue recognition policies against the new Section 23 criteria to ensure compliance in upcoming reporting periods.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-ifrs-for-smes-educational-module-23

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