This week marks the final deadline for comments on the consultation being carried out by the Financial Reporting Council (FRC) on plans to withdraw FRSSE, the Financial Reporting Standard for Smaller Entities and proposals for a new standard for micro-entities, FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime
Following changes in EU law which mean small companies need to include less information in their accounts and make fewer mandatory disclosures the FRC has said it intends to issue a new accounting standard for micro-entities and to withdraw the existing FRSSE.
Closing date for comments is 30 April and the regulator has indicated the new standards will be issued in July 2015.
According to the FRC, the proposals will benefit 1.5m of the smallest companies (micro-entities) in the UK by simplifying their reporting requirements. There will also be changes for the 1.5m other companies that fall within the ‘small’ company size threshold, including improving accounting for financial instruments and supporting the implementation of legislative changes.
Listed groups will benefit from greater flexibility and greater efficiency in reporting formats.
Melanie McLaren , FRC executive director of codes and standards, said: ‘Overall we believe our proposals provide a consistent framework for reporting by all entities in the UK and Republic of Ireland, building on the legal framework and proportionately tailored to the size of the entity and users’ information needs.’
The proposals are intended to be effective for accounting periods beginning on or after 1 January 2016, with early application permitted for accounting periods beginning on or after 1 January 2015.
Details of the consultation are here
