IFRS Foundation Releases Educational Module for Section 21 of IFRS for SMEs

Posted 25 June 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: In terms of Section 21 of the third edition of the IFRS for SMEs Accounting Standard, the IFRS Foundation has published a new educational module to support the application of accounting requirements for provisions and contingencies.

The educational module, prepared by the technical staff of the International Accounting Standards Board (IASB), supports the implementation of the third edition of the Standard, which was issued in February 2025. This module forms part of a suite of resources designed to assist stakeholders who prepare, audit, or read financial statements of small and medium-sized entities without public accountability.

The publication focuses specifically on the accounting treatment, measurement, and disclosure of provisions, contingent liabilities, and contingent assets under Section 21. Key components of the newly released educational module include:

  • Detailed guidance on the recognition criteria for provisions, including the existence of a present obligation arising from a past event.
  • Step-by-step instructions on the initial and subsequent measurement of provisions, including the treatment of future events and expected disposals.
  • Clear distinctions between provisions, contingent liabilities, and contingent assets, along with their respective disclosure requirements.
  • A comprehensive comparison between Section 21 of the IFRS for SMEs Accounting Standard and the corresponding requirements in full IFRS Accounting Standards.

Click here to download the IFRS for SMEs Section 21 Educational Module.

What this means for you, your business, or your clients

  • For yourself: You must familiarise yourself with the updated recognition and measurement criteria under Section 21 of the third edition of the IFRS for SMEs Accounting Standard to ensure accurate auditing and independent reviews.
  • For your business: Your practice must update its internal training materials, audit checklists, and compliance templates to align with the February 2025 third edition guidelines for provisions and contingencies.
  • For your clients: Your clients qualifying as SMEs must review their existing provisions, contingent liabilities, and contingent assets against the new module guidelines to ensure their financial statement disclosures comply with the updated standard.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-ifrs-for-smes-educational-module-21

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