Value Proposition: If you are preparing financial statements and facing the auditor/bank question: “Are you Full IFRS or IFRS for SMEs?” — you do not need an introductory article; you need a file that defines the differences affecting measurement and disclosure and translates the decision into outputs: scope of application, written accounting policies, and a traceable disclosure list within a single working file.

In 20 seconds: What will you get?

• Decision Checklist: A decision paper that identifies the appropriate framework and its justifications (Scope + stakeholder requirements).
• Difference Matrix: A table of Recognition/Measurement differences by the most impactful topics for companies.
• Standards Map: A map linking Full IFRS (such as IFRS 9/15/16/17/18) to its counterparts within IFRS for SMEs (Sections).
• Disclosure Checklist: A practical disclosure list to prepare Notes without missing material items.
• Accounting Policies Memo Template: A written accounting policy template (ready for review) explaining choices and assumptions.
• Transition Notes: A template for transition/differences memos (if the company is transitioning from one framework to another).
• Pack Index + Sign-off: Delivery index + Prepared/Reviewed to establish an archivable version.

CTA related to outputs: Receive Decision Sheet + Policies Memo + Disclosure Checklist ready for review.

Suitable for

• Chief Accountant / Financial Controller: Documenting the framework and policies and preparing reviewable memos.
• SMEs Owners / Finance Leads: Selecting an appropriate reporting framework for small and medium enterprises (SMEs) with a clear impact on disclosures.
• Audit/Advisory Support: Preparing a decision file and policies to respond to auditor/bank inquiries.

Not Suitable for

• Those seeking only a “theoretical summary” without decision tools or deliverable policy/checklist outputs.
• Those looking for the official standards texts or a course that grants IFRS certification — the product is neither a certification nor an accrediting body.

Without the Pack / With the Pack (Short Comparison)

Before Use: 5 Symptoms That the Framework Decision is Undecided

• Every financial statement preparation cycle raises the question: “Which standard do we apply?” without a decision document.
• The auditor requests a Policy memo, but only “notes” exist in the file.
• Notes lists change depending on the person because there is no fixed Disclosure checklist.
• There is no clear link between Full IFRS standards (IFRS 9/15/16/17/18) and their counterparts within IFRS for SMEs.
• Any transition between frameworks occurs without a register of differences/adjustments, leading to lost traceability.

How to use IFRS for SMEs compared to Full IFRS practically?

Step 1: Preparation and Defining the Scope of the Decision

• Identify who will use the statements: Management/Bank/Investor/Auditor, and establish reporting requirements.
• Identify the “impactful” transactions in your company: Revenue contracts, lease contracts, financial instruments, insurance, investments…
• Determine the level of disclosure required: Internal statements/Public statements/Funding requirements.

Step 2: Run the Difference Matrix + Policies

• Use the Difference Matrix to identify the topics where measurement or disclosure will differ between Full IFRS and IFRS for SMEs.
• Complete the Accounting Policies Memo: What is the choice? What is the basis? What is its impact on presentation and disclosure?
• Use the Standards Map to determine where each point lies within the standards (IFRS 9/15/16/17/18 vs. Sections in SMEs).

Step 3: Produce Delivery Outputs (Pack) and Establish a Reviewable Version

• Run the Disclosure checklist and prepare the Notes structure according to the chosen framework.
• If there is a transition: Fill in the Transition/adjustments register to document the differences and their impact.
• Compile the Pack index + Sign-off (Prepared/Reviewed) to establish and approve the version before closing/delivery.

Product Components (Clear Inventory)

1. Decision Checklist (Framework Decision Paper)
   • Practical Purpose: Clearly establish “Which framework do we apply and why” to present to management/auditor.
   • When to Use: At the beginning of statement preparation or when changing funding/disclosure requirements.
   • Resulting Output: Decision sheet + justifications + scope of application.
2. Standards Map (IFRS ↔ SMEs Sections)
   • Practical Purpose: A mapping process linking Full IFRS (such as IFRS 9/15/16/17/18) to its counterparts within SMEs.
   • When to Use: When preparing policies or responding to inquiries about the “corresponding standard.”
   • Resulting Output: Mapping table that helps unify the team’s language.
3. Difference Matrix (Recognition/Measurement)
   • Practical Purpose: Identify where the treatment (measurement/recognition) differs in items affecting the statements.
   • When to Use: Before finalizing the numbers, or during transition planning.
   • Resulting Output: Differences table + company decision column + expected impact.
4. Disclosure Checklist (Disclosure List)
   • Practical Purpose: Build Notes as a checklist instead of “free writing” that may miss disclosures.
   • When to Use: During draft statement preparation and before issuing the final version.
   • Resulting Output: Completed checklist + status (Done/NA/Pending) for each item.
5. Accounting Policies Memo Template (Policies Memo)
   • Practical Purpose: Produce a written policy: definition + choice + reason for choice + impact on measurement/presentation.
   • When to Use: Year-End + when the auditor requests documentation of policies + when changing a policy.
   • Resulting Output: Policy memo ready for review and attachment within the closing file.
6. Transition & Adjustments Register (Transition Register)
   • Practical Purpose: Document differences between the two frameworks as traceable adjustment items (Reclass/Measurement/Disclosure impact).
   • When to Use: When transitioning from one framework to another or when reorganizing presentation.
   • Resulting Output: Register of differences + references + approval decision.
7. Pack Index + Sign-off
   • Practical Purpose: Organized delivery: What has been done? What is the version? Who reviewed it?
   • When to Use: Before the final closing and before sending the file to the auditor/management.
   • Resulting Output: Pack index + Prepared/Reviewed + Version.

What should be included in the delivery?

• 01-Guide (PDF/DOCX): Explanation of the main differences in a practical manner (When does it affect? How do you document your decision?).
• 02-Decision Sheet (XLSX): Scope of decision + stakeholders + justifications + approval outcome.
• 03-Standards Map: A map linking Full IFRS (IFRS 9/15/16/17/18) ↔ SMEs Sections.
• 04-Difference Matrix: Differences table + company decision column + impact on measurement/disclosure.
• 05-Disclosure Checklist: Traceable disclosure checklist + status for each item.
• 06-Policies Memo: A ready-to-fill and review accounting policies memo template.
• 07-Transition Register: Register of transition differences/adjustments (if any) + References.
• 08-Pack Index & Sign-off: Index + Version + Prepared/Reviewed + Date.
• 09-Archiving Map: Path for saving copies (Year/Version) to establish the approved version.

After Implementation (Two Points Only)

• Operational Outcome for the Team: The framework and policies decision transforms into a working file: Decision + Policies + Checklist instead of recurring discussions every year.
• Regulatory/Audit Outcome: Traceability: Every impactful difference documented (Where does it lie in the standard? What is the company decision? What is its impact?) with Pack index and Sign-off.

FAQ — Questions Before Purchase

Does the product only explain the differences or does it provide me with deliverable outputs?

It provides both: Guide + operational tools (Decision sheet / Policies memo / Disclosure checklist / Transition register) for a reviewable delivery.

Does it cover the standards: IFRS 9, IFRS 15, IFRS 16, IFRS 17, IFRS 18?

Yes, as a linking and comparison methodology: it clarifies where topics appear in Full IFRS and how they are treated or simplified within IFRS for SMEs, aimed at decisions, policies, and disclosures (not official standard texts).

Is it suitable for any country or does it change according to the regulatory body?

The comparison is based on the frameworks themselves. However, acceptance of applying IFRS for SMEs or Full IFRS may be affected by local requirements/funding/auditor, hence the Decision sheet includes a “local requirement/funder” section for documentation.

Is it only suitable for small and medium enterprises (SMEs)?

It is primarily designed for this context, but it can also be used when comparing the impact of disclosures and measurement for a growing company considering transitioning to a more detailed framework.

Does the product produce ready financial statements?

No. The product focuses on decisions, policies, disclosures, and memos. If you want ready statement templates, that is a different product.

Does it include how to obtain IFRS certification?

The product does not grant IFRS certification. However, it is useful as review material for the differences. Obtaining certification typically occurs through a training program/exam with a recognized training body, and requirements vary by entity and program.

Does it help me during external audits?

Yes, from a documentation perspective: Policy memo + Decision sheet + Disclosure checklist reduce questions about “what is the basis?” and provide a clear traceability path.

Does it require TB data to operate?

Not necessarily. You can operate it as decisions and policies. If you want to measure the impact of transitions or differences on numbers, you can add a TB summary to support the Transition register.

Ready to establish the framework decision and close the policies and disclosures file?

Outputs: Decision Sheet + Policies Memo + Disclosure Checklist + Standards Map + Pack Index.