Final answer:
Simplified recognition and measurement for SMEs in IFRS involves the use of simplified accounting requirements to reduce complexity and cost while maintaining reliable financial information.
Step-by-step explanation:
Simplified recognition and measurement for Small and Medium-sized Entities (SMEs) in International Financial Reporting Standards (IFRS) includes the use of simplified accounting requirements for certain topics. These simplified requirements aim to reduce the complexity and cost of financial reporting for SMEs while still providing relevant and reliable financial information.
Examples of simplified recognition and measurement for SMEs include:
- Allowing for the use of historical cost instead of fair value for certain assets
- Exempting SMEs from certain complex and burdensome accounting standards
- Reducing the number of required disclosures