Financial reporting: Government steps back from IFRS

The government is to take a step back from IFRS after years of encouraging its worldwide adoption.

A number of companies will now be allowed to revert to UK GAAP under a consultation by the Department for Business Innovation and Skills (BIS). These mainly include subsidiaries and companies delisting from AIM.

The announcement reflects the government’s general aim to reduce financial reporting requirements and is expected it will save up to £600m a year.