IFRS Foundation: IFRS for SMEs Educational Module 12

IFRS Foundation: IFRS for SMEs Educational Module 12

• 21 October 2025
• Accounting
• South African Accounting Academy

Summary:
The IFRS Foundation has published a new educational module to support the application of Section 12 on Fair Value Measurement of the third edition of the IFRS for SMEs Accounting Standard (which was issued by the International Accounting Standards Board (IASB) in February 2025).

Article:

This module has been prepared by the International Accounting Standards Board (IASB) technical staff.

This educational module supports the requirements for measuring fair value and providing disclosures about fair value measurements in accordance with Section 12 Fair Value Measurement of the Standard. 

The module: 

• provides explanations and examples to improve understanding of the Section 12 requirements; 
• identifies the significant judgements required to measure fair value and make disclosures about fair value measurements; 
• includes questions to test your understanding of the Section 12 requirements; and 
• includes case studies that provide a practical opportunity to apply the Section 12 requirements. 

The module focuses on fair value measurements that are likely to be encountered by SMEs. 

The IFRS for SMEs Accounting Standard permits or requires an SME to measure some assets and liabilities at fair value. An SME might use a third-party valuation specialist to help determine fair value measurements. If the SME appoints a third-party valuation specialist, it will still need to ensure that the valuation is made in accordance with the requirements in Section 12. 

This module forms part of a package of new educational resources to support implementation of the third edition of the IFRS for SMEs Accounting Standard. 

This educational material is aimed at stakeholders learning about, applying or reading financial statements prepared using the IFRS for SMEs Accounting Standard, and includes a comparison with the related full IFRS Accounting Standard.

The IFRS for SMEs Accounting Standard (Standard) is intended for use by small and medium-sized entities that publish general purpose financial statements and that do not have public accountability (referred to as small and medium-sized entities—see Section 1 Small and Medium-sized Entities of the Standard). The objective of general purpose financial statements is to provide information about a reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.

Click here to download the 62-page document:

https://www.ifrs.org/content/dam/ifrs/supporting-implementation/smes/2025-modules/module-12.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need evaluate adherence with the relevant financial reporting framework, and thus you need knowledge of newly revised standards that are approved as well as when they become effective.
• Failure to adhere to IFRs accounting standards may lead to misrepresentation in the financial statements.
• As an auditor, compiler and independent reviewer, you should be aware of new standards and publications (like guidance and support materials) issued by the standard-setting bodies, e.g. the IAASB, IFRS Foundations, etc. – especially in respect of IFRS for SMEs.

Relevance to Your clients:

• Compilers of financial statements should be aware of new standards and publications (like guidance and support materials) issued by the standard-setting bodies, e.g. the IAASB, IFRS Foundations, etc. – especially in respect of IFRS for SMEs

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