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IFAC Unveils a Game-Changer for SME Sustainability
Small Business Sustainability Checklist
Struggling to navigate shifting sustainability rules? The new Small Business Sustainability Checklist cuts through the noise and delivers an instant roadmap to action.
In just a few clicks, small businesses and their accountants can benchmark performance, pinpoint risks, and unlock growth opportunities—all tailored to their industry and lifecycle.
Why SMEs Can’t Wait
Busy owners and accountants face a tidal wave of environmental, social, and governance (ESG) demands. Ignoring them risks reputational damage, missed markets, and regulatory fines. The Checklist offers a simple self-assessment that turns complexity into clarity.
How the Checklist Works
- Interactive self-assessment across
– Environmental stewardship
– Social responsibility
– Governance practices
- Instant scoring in one of three stages:
- Limited
- Underway
- Maturing
- Customized action plans for any “Limited” or “Underway” areas
- Curated resource library drawn from 10+ years of expert guidance
You can measure what matters—and then improve it.
Take the First Step Today
Visit portal of the International Federation of Accountants (IFAC) to try the Small Business Sustainability Checklist by clicking the below link. Establish your baseline, track progress, and position your practice—and your clients—as sustainability leaders in a rapidly evolving world.
About IFAC
IFAC is the global organization for the accountancy profession, founded in 1977. It brings together 180 member and associate bodies across 135 jurisdictions, representing over 3 million professional accountants worldwide. IFAC champions the development, adoption, and implementation of high-quality international standards in auditing, ethics, education, and public sector accounting.
IFRS for SMEs (3rd Ed.): Key Updates & Implications for PH
IFRS for SMEs (3rd Ed.): Key Updates & Implications for PH
On 27 February 2025, the International Accounting Standards Board (IASB) released the third edition of the IFRS for SMEs Accounting Standard, marking a significant milestone in aligning SME financial reporting with global best practices. While the Philippines—through the Financial and Sustainability Reporting Standards Council (FSRSC)—has yet to formally adopt the revised standard, its eventual implementation will have notable implications for local SMEs.
Key Changes in the Third Edition
- Revenue Recognition (Section 23): Now aligned with IFRS 15, introducing a simplified five-step model for recognizing revenue from contract with customers.
- Fair Value Measurement (Section 12): A new dedicated section consolidates guidance previously scattered across the standard, based on IFRS 13 principles.
- Business Combinations (Section 19): Adoption of the acquisition method, aligning with IFRS 3, and requiring fair value measurement of contingent consideration.
- Financial Instruments (Section 11): Merged and updated to reflect IFRS 9 principles, though the incurred loss model is retained for simplicity.
- Consolidated Financial Statements (Section 9): Revised definition of control, now consistent with IFRS 10.
- Statement of Cash Flows (Section 7): New disclosures required for changes in financing liabilities and supplier finance arrangements.
Items That Remain Unchanged
- Lease Accounting: IFRS 16 has not been adopted; SMEs may continue using simplified lease recognition.
- Expected Credit Loss Model: The more complex ECL model from IFRS 9 is not included, preserving the incurred loss approach.
- Cryptocurrency and Regulatory Deferral Accounts: These topics remain outside the scope of the current revision.
Effectivity Date in the Philippines
- Globally, the third edition takes effect for annual periods beginning on or after 1 January 2027, with early application permitted. In the Philippines, the FSRSC is still evaluating the standard, and no formal adoption timeline has been announced as of July 2025.
Link to the pdf file of the IFRS for SMEs (Third Edition) publication may be found at www.ifrs.org.
