A B S T R A C T

The purpose of the research is to compare the “Concepts and Fundamental Principles” mentioned in Section II of the “International Financial Reporting Standard for Small and Medium-sized Entities” with the “Conceptual Framework for IFRS” revised in 2018 and to discuss different conceptual approaches.

The methodology of the research - comparative analysis, analysis and synthesis methods were widely used during the research.

The practical importance of the research – in accordance with the “Conceptual Framework for IFRS” revised in 2018 and taking into account the application features of the “International Financial Reporting Standard for Small and Medium-sized Entities”, the information in the financial statements prepared by Small and Medium-sized Entities will be reflected in a significantly more transparent or relevant and faithful representation for users.

The results of the research are to make proposals for the revision of the “International Financial Reporting Standard for Small and Medium-sized Entities” in accordance with the updated “Conceptual Framework” for International Financial Reporting Standards, taking into account the relevant changes.

The originality and scientific novelty of the research is to achieve the improvement of the “International Financial Reporting Standard for Small and Medium-sized Entities” by converging it with its own characteristics in accordance with the International Financial Reporting Standards and International Accounting Standards, as well as the Interpretations providing their disclosures.

Keywords: IFRS, IFRS for SMEs, Conceptual Framework, Concepts and Basic Principles, financial statements.