IFRS Foundation: IFRS for SMEs Educational Module 35

IFRS Foundation: IFRS for SMEs Educational Module 35

• 06 October 2025
• Accounting
• South African Accounting Academy

Summary:
The IFRS Foundation has published a new Educational Module to support the application of Section 35 on the Transition to 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 transition to the Standard in accordance with its Section 35 Transition to the IFRS for SMEs Accounting Standard. 

The module:

• focuses on the requirements applicable to a first-time adopter of the Standard;
• introduces the requirements and reproduces the text of the Standard along with explanatory notes and examples designed to enhance understanding of those requirements;
• identifies the significant judgements required in accounting for the transition to the Standard;
• includes self-assessment questions designed to test your understanding of the requirements in Section 35; and
• includes case studies that provide a practical opportunity to apply the Section 35 requirements.

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 or applying 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).

Click here to download the 100-page document:

https://www.ifrs.org/content/dam/ifrs/supporting-implementation/smes/2025-modules/module-35.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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