Question

When can we use IFRS for SMEs instead of full IFRS standards?

Answer 1

The standard does not contain a limit on the size of an entity that may use the IFRS for SMEs provided that it does not have public ac­count­abil­ity
Nor is there a re­stric­tion on its use by a public utility, not-for-profit entity, or public sector entity
A sub­sidiary whose parent or group uses full IFRSs may use the IFRS for SMEs if the sub­sidiary itself does not have public ac­count­abil­ity
The standard does not require any special approval by the owners of an SME for it to be eligible to use the IFRS for SME
Listed companies, no matter how small, may not use the IFRS for SMEs

Comments

Once the entity is identified as
-not having public accountability (either via share lisiting in a public exchange or operating using the funds from external parties in fiduciary capacity)
-having the requirement to prepare and present general purpose financial statements

Any business not falling in the above have to follow full standards (IAS and IFRS). Meeting the criteria, they make make a choice of either, to follow consistently

Answer 2

-not having public accountability (either via share lisiting in a public exchange or operating using the funds from external parties in fiduciary capacity)
-having the requirement to prepare and present general purpose financial statements