IFRS Foundation releases educational modules for the IFRS - SMEs Standard
In August 2018, the IFRS Foundation released an additional seven educational modules in respect of the 2015 version of the IFRS for SMEs Standard. These modules aim to assist anyone who wants to prepare, use, or understand financial statements that have been prepared under the Standard.
This brings the total number of educational modules released to date in respect of the Standard to ten.
What is the IFRS for SMEs Standard?
According to the IFRS Foundation’s press release, small and medium-sized enterprises are “estimated to account for over 95% of all companies around the world.”
Given that the full IFRS Standards can be complex to navigate, and may contain standards that aren’t necessarily relevant to smaller companies, the stand-alone IFRS for SMEs Standard was released in order to provide an outline of the accounting requirements that SMEs are expected to follow.
The IFRS for SMEs Standard is much more condensed than full IFRS standards, coming in at around 250 pages, and aims to simplify full IFRS Standards while giving particular focus to areas such as cash flows, solvency, and liquidity. It is broken down into 35 distinct sections.
It differs from full IFRS Standards in some notable ways. For example, fewer disclosures are required under the Standard, there are some simplified recognition and measurement principles, and it has also been written in a way that’s easier to understand compared to the full IFRS Standards.
Which modules are available so far?
So far, there are ten educational modules available in respect of the IFRS for SMEs standard. Three initial modules were released back in April 2018, and seven new modules were published last month.
Each educational module contains a variety of tools to improve user’s understanding of each topic, including:
- the full text of that particular section within the IFRS for SMEs Standard along with explanatory notes and examples;
- a comparison between the section and its full IFRS counterpart;
- an analysis of which significant estimates or judgements are likely to be made when applying that section of the IFRS for SMEs Standard; and
- various questions to help test your understanding of the section, along with case studies to develop that understanding further.
As the IFRS for SMEs Standard contains 35 modules in total, further educational modules are expected to be released in the near future so that ultimately, each section of the Standard has its own corresponding educational module.
Where can I access these modules?
The English-language version of the modules can be downloaded from the IFRS Foundation’s website
, although please note access requires free registration.
Currently available educational modules are:
- Small and Medium-sized Entities (Module 1)
- Financial Statement Presentation (Module 3)
- Statement of Comprehensive Income and Income Statement (Module 5)
- Statement of Changes in Equity and Statement of Income and Retained Earnings (Module 6)
- Statement of Cash Flows (Module 7)
- Basic Financial Instruments (Module 11)
- Other Financial Instrument Issues (Module 12)
- Inventories (Module 13)
- Property, Plant and Equipment (Module 17)
- Events after the End of the Reporting Period (Module 32)
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