In July, most of the UK’s micro entities could have their own tailored accounting standard, compliant with legislation permitting simplified financial statements.

Eligible micro entities (most companies, but not limited liability partnerships (LLPs) or charities) will not have to apply (the currently draft) FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime. They could choose to comply with the new UK GAAP requirements embodied in FRS 102, Financial Reporting Standard applicable in the UK and Ireland, or its small company elements. They will not, however, be able to apply the 2014 Financial Reporting Standard for Smaller Entities (FRSSE), which FRS 105 will replace.