IFRS 19 and IFRS for SMEs both aim to reduce reporting burdens, but they differ fundamentally in scope and application. IFRS 19 is a disclosure-only standard for eligible subsidiaries (subsidiaries without public accountability) using full IFRS for recognition/measurement, whereas IFRS for SMEs is a standalone, simplified framework for entities without public accountability.
Unlike IFRS 19, which is a disclosure-only Standard, the IFRS for SMEs Accounting Standard is a stand-alone Standard that includes recognition, measurement, presentation and disclosure requirements.
IFRS allows for the recognition of internally generated intangible assets where certain conditions are met. IFRS for SMEs does not allow for the recognition of these intangible assets. Borrowing costs under IFRS for SMEs are expensed as opposed to IFRS which requires them to be capitalised where applicable.
IFRS 19 includes reduced disclosures for almost all existing IFRS Accounting Standards, the details of which are specific to each impacted standard. To apply IFRS 19, entities will first apply the recognition, measurement and presentation requirements in each applicable IFRS Accounting Standard.
The release of IFRS 19 gives eligible companies the opportunity to simplify their reporting processes and reduce the cost of preparing financial statements. A subsidiary electing to apply IFRS 19 can align its accounting policies with the parent company for group reporting purposes and reduce its disclosure burden.
IFRS for SMEs provides a balanced approach—simpler than full IFRS but still internationally recognised and structured for transparency. If your business needs a streamlined financial reporting system that makes sense, IFRS for SMEs might be the perfect solution.
IFRS 19 was issued in May 2024, with an effective date of 01 January 2027. It is also part of the IFRS's Disclosure Initiative projects, and its particular purpose is to reduce the disclosure burden faced by entities that do not have public accountability.
IFRS 19 is a disclosure-only Standard. An eligible subsidiary that applies IFRS 19 applies the requirements in other IFRS Accounting Standards except for disclosure requirements and, instead, applies the reduced disclosure requirements in IFRS 19.
The four pillars of IFRS S1 and S2 are governance, strategy, risk management and metrics and targets.
IFRS 19 allows eligible entities to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. When IFRS 19 was issued in May 2024, it reflected reduced disclosures for other IFRS accounting standards as at 28 February 2021.
All entities apart from public companies, state- owned companies and certain non-profit companies are allowed to apply the IFRS for SMEs. Profit companies, other than state owned or public companies, whose public interest score for the particular financial year is at least 350.
The IFRS for SMEs has simplifications that reflect the needs of users of SMEs' financial statements and cost-benefit considerations. Compared with full IFRSs, it is less complex in a number of ways: Topics not relevant to SMEs are omitted.
The objective of IFRS 19 is to specify the disclosure requirements an entity is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. An entity electing to apply this Standard applies the requirements in other IFRS Accounting Standards, except for the disclosure requirements.
IFRS for SMEs Accounting Standard Third Edition (2025) The third edition of the IFRS for SMEs® Accounting Standard, issued in February 2025 and effective from January 2027, brings several key amendments compared to the second edition issued in 2015.
IFRS 5 applies to a non-current asset (or disposal group) that is classified as held for distribution to owners. A discontinued operation is a component of an entity that has either been disposed of or is classified as held for sale.
Summary. IFRS 18 replaces IAS 1 Presentation of Financial Statements as the primary source of requirements in IFRS accounting standards for financial statement presentation which will provide better information to users.
The Ps refer to People, Planet, and Profit, also often referred to as the triple bottom line. Sustainability has the role of protecting and maximising the benefit of the 3Ps.
IFRS 19, published in May 2024, includes reduced disclosure requirements from IFRS Accounting Standards issued up to 28 February 2021.
IFRS 19 'Subsidiaries without Public Accountability: Disclosures' (the Standard) creates a reduced set of disclosures that certain in-scope entities can elect to apply instead of the disclosure requirements set out in other IFRS Accounting Standards.
IAS 19 requires use of the projected unit credit method to estimate the present value of the defined benefit obligation, while US GAAP requires that the actuarial method selected reflect the plan's benefit formula.
As noted in the SEC Staff Final Report, IFRS lacks guidance for a certain number of industries, and concluded that overall, U.S GAAP is more comprehensive than IFRS. The third and final reason for the delay concerns the shifting of standard-setting authority from the SEC to the IASB.
As already discussed, the Standards issued by the IASB are called IFRS. The predecessor body, IASC, had however already issued certain International Standards which are called International Accounting Standards (IAS). These IAS were issued by the IASC between 1973 and 2001.
Deloitte e-learning — IFRS 19. This Deloitte e-learning module provides training in the background, scope and principles under IFRS 19 'Subsidiaries without Public Accountability: Disclosures', and the application of this standard.