Advantages and disadvantages

In this lesson

1. 0:00 IFRS for SMEs advantages and disadvantages
2. 1:01 Worked example Shell company transition
3. 2:12 Investment properties treatment and revaluation
4. 2:39 Development expenditure prior period adjustment
5. 3:24 Goodwill recognition and amortisation limits
6. 4:03 Calculating goodwill with proportionate method

About this lesson

You'll discover why smaller entities choose this framework—relevance, cost savings, and simpler compliance—while understanding the trade-offs around comparability and complexity. Through a worked example, you'll see how to handle investment properties, development expenditure, and goodwill under IFRS for SMEs, including when to revalue assets, treat prior period adjustments, and apply the proportionate method for non-controlling interests. This session covers critical accounting treatments that differ between full IFRS and the SME framework. You'll work through real scenarios: revaluing investment properties at fair value, expensing capitalised development costs, and calculating and amortising goodwill with a maximum ten-year useful life. These distinctions matter because they directly affect how your financial statements are prepared and how examiners expect you to apply the standard in case study and objective test questions. By the end, you'll be confident explaining why SMEs might choose this standard and handling the most common accounting adjustments you'll encounter in FR and SBR papers.

Duration: 5m