Most commentary so far on the move to new UK GAAP makes the choice of accounting framework sound reasonably straightforward: essentially, choose the ‘simplest’ framework for which you qualify, and apply that.

But while this may be good advice for many, there is room for a more nuanced approach. This involves an entity looking at the most critical areas of its business and considering how these areas are reported on, and how this reporting fits with investor expectations and industry norms. For every preparer moving to a new framework in 2015, it is vital to ensure that the full ramifications are understood so that the right choice is made.