The International Accounting Standards Board (IASB) issued the updated version (third edition) of the IFRS for SMEs Accounting Standard. This edition includes updates to several requirements aimed at aligning them with full IFRS Standards while applying appropriate simplifications for the purposes of the Standard.
Most updates focused on Sections 2, 9, 11, 19, and 23, in addition to limited updates to other sections of the Standard. The updates to Section 2 aim to align with the updated Conceptual Framework (2018). Updates to Section 9 align with the requirements of IFRS 10 on consolidated financial statements. Updates to Section 11 align with the requirements of IFRS 9, which involved merging Section 11 with Section 12 of the current edition (second edition) and adding a new section on fair value measurement. Updates to Section 19 align with the requirements of IFRS 3, and updates to Section 23 align with the requirements of IFRS 15, including renaming the section to "Revenue from Contracts with Customers." The updates also include improvements in wording (such as simplified language and updated definitions), clarity (such as additional guidance and illustrative examples), and the reorganization of several requirements within the Standard.
In accordance with the bylaws of SOCPA's Accounting Standards Board, the Board carried out the standards endorsement procedures. These included preparing a detailed study of the Standard, presenting the Standard along with its translation and the Board's preliminary recommendation for public comment, and holding a roundtable discussion. Through these procedures, the Board resolved on 04/07/1447 AH (corresponding to December 24, 2025) to approve the adoption of the updated version (third edition) of the IFRS for SMEs Accounting Standard in Saudi Arabia, with early adoption permitted, taking into account the modifications set out in the endorsement document for IFRS in Saudi Arabia.
The updated version can be accessed by clicking
here.