This publication contains guidance on accounting and financial reporting for small and medium-sized enterprises (SMEs).

It was developed by the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) at the United Nations Conference on Trade and Development (UNCTAD).

The Group of experts proposed a three-tiered structure to meet the financial reporting needs of SMEs.

This guidance applies to Level 2 SMEs. The wording of this guidance is based on International Accounting Standards (IASs) developed by the International Accounting Standards Board.

This guidance is intended to be user friendly, understandable and dealing with the most frequently encountered transactions.

It is also expected to facilitate the smooth transition of SMEs in Level 2 to applying full IASs when they grow to Level 1.