What is an SME?
Small- and medium-sized entities (SMEs), are entities that publish general purpose financial statements for external users and do not have public accountability. An entity has public accountability under the IASB's definition if it files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market; or it holds assets in a fiduciary capacity for a broad group of outsiders.
Practically speaking, IFRS for SMEs is viewed as an accounting framework for entities that are not of the size nor have the resources to use full IFRS.