Monday, 1st September 2014: The UK Financial Reporting Council (FRC) has today issued a Consultation Document Accounting Standards for Small Entities - Implementation of the EU Accounting Directive to coincide with the publication of the UK Department of Business, Innovation and Skills (BIS) consultation document UK Implementation of the EU Accounting Directive. The public consultation undertaken by the Department of Jobs, Enterprise and Innovation closed on 31 March 2014.
The FRC proposes:
a) to issue a new accounting standard for micro-entities. The Financial Reporting Standard for Micro-entities (FRSME) will make financial statements for these entities simpler;
b) the introduction of a new section into FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for small entities. The underlying accounting by small entities will in future be consistent with the standard for financial reporting used by other unlisted companies, subsidiaries of listed companies and public benefit entities such as charities; however, the presentation and disclosure requirements for small entities may be more straightforward; and
c) as a result, the FRC’s existing Financial Reporting Standard for Smaller Entities (FRSSE) be withdrawn.
Pursuant to its statutory mandate to cooperate in the development of accounting standards, IAASA has observer status at meetings of the Accounting Council of the FRC.