Recognition in IFRS for SMEs requires that an item be recorded in financial statements if it meets the definition of an asset, liability, income, or expense and provides relevant financial information.
Revenue is recognized when it is probable that economic benefits will flow to the entity and the amount can be reliably measured.
IFRS for SMEs simplifies recognition and measurement to reduce compliance costs and administrative burdens for small businesses.
Impairment testing ensures that assets are not carried at more than their recoverable amount, preventing overstatement of financial positions.
Financial liabilities are typically measured at amortized cost unless they are held for trading, in which case fair value may be used.
IFRS for SMEs primarily uses historical cost as the measurement basis, but fair value may be used in specific circumstances.
