According to a press release, the International Accounting Standards Board (IASB) has issued a significant update to the IFRS for SMEs Accounting Standard, which is currently used in 85 jurisdictions.

This revision aims to enhance financial reporting for small and medium-sized enterprises (SMEs) while maintaining the Standard’s simplicity. 

Key changes include a revised model for revenue recognition, consolidated fair value measurement requirements, and updated guidelines for business combinations, consolidations and financial instruments. These updates are the result of a comprehensive review to align SME reporting with evolving global practices. 

IASB Chair Andreas Barckow emphasized that the update improves financial information for users while remaining accessible for SMEs. The revised Standard takes effect for annual periods beginning on or after Jan. 1, 2027, with early adoption permitted.