These standards were specifically developed for the small and medium scale entities (SMEs’) in Sri Lanka. The disclosure requirements set out in the accounting standards for SMEs’ is less compared to disclosure requirements for SBEs’.

In brief, SME’s are all entities which does not fall under business of Banking, Insurance, Leasing, Factoring, financial services, fund management, stock brokers, companies listed under Colombo stock exchange.

Further all companies with revenue more than 100 million but not exceed 500 million, share capital between 50 million to 100 million shall be considered as SMEs’.