Global Standards for the world economy

Sunday 28 February 2021

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Guidance for micro-sized entities

In June 2013, the International Accounting Standards Board (the Board) issued guidance to help micro-sized entities apply the IFRS for SMEs (2009).


Over 80 jurisdictions have either adopted the IFRS for SMEs or stated a plan to do so within the next few years. In some of these jurisdictions the IFRS for SMEs is being used by very small companies with just a few employees. The Board was asked and agreed to develop guidance suitable for micro-sized entities currently applying the IFRS for SMEs and also those considering doing so in the future.


The guidance was developed with input from the SME Implementation Group. It extracts from the IFRS for SMEs only those requirements that are likely to be necessary for a typical micro-sized entity, without modifying any of the principles for recognising and measuring assets, liabilities, income and expenses. In a few areas, it also contains further guidance and illustrative examples to help a micro-sized entity to apply the principles in the IFRS for SMEs.

The guidance contains cross-references to the IFRS for SMEs for matters not covered by the guidance. Consequently, having applied the guidance, an entity’s notes to the financial statements and auditor’s report could refer to conformity with the IFRS for SMEs because this guidance does not modify the requirements of the IFRS for SMEs.

Updating the guidance

In 2015, the Board made limited amendments to the IFRS for SMEs after a comprehensive review of the Standard. The amendments are effective for annual periods beginning on or after 1 January 2017. We do not expect these amendments to have a significant effect on a micro-sized entity’s financial reporting practices and financial statements.

We are currently assessing the benefits of an electronic solution to updating the micros-sized entities guide for the 2015 amendments.

* The Guidance is free to download for private, non-commercial use. You need to be an eIFRS Basic user to access the IFRS for SMEs; the registration is free of charge.  eIFRS Basic users, eIFRS Professional users and registered users of our Web Shop can access the material with their username and password.  Click here if you have forgotten your password.

Not registered?

Register for eIFRS Basic or subscribe to eIFRS Professional.

Once you have registered, return to this page and enter your username and password, when requested, to access the IFRS for SMEs.


Contact us

Darrel Scott 
Board Member, Chairman of the SME Implementation Group 


Michelle Fisher
Senior Technical Manager, IFRS for SMEs