This is the first time the standard has been updated since 2015. The priority will be to ensure the standard is suitable for small and medium-sized entities, and does not create any new levels of complexity.

One of the key changes set out in the 361-page consultation is the introduction of new revenue recognition rules in line with IFRS 15 Revenue from Contracts with Customers. In future, SMEs will have to recognise revenue for goods and services when the customer obtains control, based on the five-step model in IFRS 15. There will be a transition period to allow SMEs to apply their current revenue recognition policy to contracts already in progress.