What is IFRS for SMEs?
IFRS for SMEs is a simplified accounting framework for entities without public accountability. In Kenya, ICPAK requires most private companies to report under IFRS for SMEs or full IFRS.
Key differences from full IFRS
- Simpler financial-instrument classification
- Goodwill amortised, not tested annually
- Fewer disclosure requirements
- R&D expensed rather than capitalised in most cases
Transitioning
Transition requires a restatement of opening balances and comparative figures. Our team runs a structured transition workshop and prepares the first IFRS-compliant set of accounts.
Ongoing reporting
Once adopted, annual statements should follow IFRS for SMEs consistently. We run refresher training whenever standards are updated.