The purpose of this study was to conduct a theoretical and analytical assessment of the impact of updates to international financial reporting standards for small and medium-sized enterprises on accounting and financial reporting. The study involved an analysis of regulatory provisions and scientific sources using comparative, structural-logical, causal and systemic methods. The results showed that the update caused significant changes in approaches to recognition, measurement and disclosure of information. The introduction of a five-step revenue recognition model changed the timing of revenue recognition, leading to a redistribution of income between periods without changing its total amount. The analysis confirmed the global significance of these changes, given that small and medium-sized enterprises account for more than 95% of all enterprises worldwide. The diffusion of international financial reporting standards for small and medium-sized enterprises expanded from 63 adopting countries in 2013 to 87 out of 169 jurisdictions in 2025, where the standard is required or permitted, indicating a steady increase in global adoption. Implementation costs are substantial: initial system modernisation costs amount to approximately USD 9,500 for medium-sized enterprises and up to USD 95,000 for large entities, with annual support costs of USD 3,000-4,500 and over USD 15,000 respectively. Implementation barriers were classified as financial, organisational, personnel and methodological. The findings show that the updates improve comparability, relevance and transparency of financial reporting but increase complexity and costs. Overall effectiveness depends on the ability of enterprises to adapt accounting systems. The results can be used by management of small and medium-sized enterprises, regulators and auditors to improve accounting policies, oversight mechanisms and reporting quality

harmonisation; transparency; implementation; information asymmetry; fair value; implementation barriers