Proposal to adopt IFRS for SMEs in place of UK/Irish FRSs
Aug 12, 2009
The Accounting Standards Board (ASB) has issued a consultation paper Policy Proposal: the Future of UK GAAP, which sets out its proposals for the future reporting requirements for UK and Irish entities.
- Tier 1 – publicly accountable entities would apply IFRSs as adopted by the EU.
- Tier 2 – all other UK entities, except those that elect to apply the Financial Reporting Standard for Smaller Entities (FRSSE), would apply the IFRS for SMEs.
- Tier 3 – small entities could choose to continue to apply the FRSSE if they do not exceed two or more of the following criteria: turnover £6,500,000; balance sheet total £3,260,000; and average number of employees 50.
Announcing the issue of the consultation paper, Ian Mackintosh, Chairman of the ASB, said 'For a number of years, the Board has stated that, in the medium term, there is no case for the use of two different accounting frameworks in the UK. The recent publication by the IASB of its IFRS for SMEs provides the Board with the opportunity to consult on what we see as the future framework for financial reporting by UK and Irish entities. I would urge all interested parties to consider the proposals and let us have their views'.