Consultation Document: Accounting Standards for small entities - Implementation of the EU Accounting Directive
On 1 September 2014 the FRC issued the Consultation Document Accounting standards for small entities – Implementation of the EU Accounting Directive. The comment period closes on 30 November 2014.
Following changes that will be made to UK and Irish company law as the EU Accounting Directive is implemented, small companies may need to include less information in their financial statements and there will be fewer mandatory disclosures. The FRC proposes a new accounting standard for micro-entities the Financial Reporting Standard for Micro-entities (FRSME). In addition the FRC proposes to introduce a new section into FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland which will set out the requirements for small entities; the underlying accounting will be consistent with FRS 102 with presentation and disclosure requirements based on new company law. As a consequence it is proposed that the FRSSE will be withdrawn.
The Consultation Document also contains proposals in relation to residents’ management companies and proposes amendments to FRS 101 Reduced Disclosure Framework and FRS 102 to reflect changes in company law.
The Consultation Document and responses received are available here.
After considering the feedback to the Consultation Document we have now issued FRED 58, FRED 59 and FRED 60 setting out the proposals in more detail.