We comment on FRED 52 'Draft amendments to the Financial Reporting Standard for Smaller Entities (effective April 2008) — Micro-entities'

  • Deloitte Response FRED 52 Image

31 Jan, 2014

We have published our comment letter on the Financial Reporting Council’s Financial Reporting Exposure Draft (FRED) 52 ‘Draft amendments to the Financial Reporting Standard for Smaller Entities (effective April 2008)-Micro-entities'.

Overall we support the proposed amendments to the Financial Reporting Standard for Smaller Entities (FRSSE).  However we have some specific comments on the implementation of the amendments.  We comment: 

we are concerned that preparers of micro-entity accounts may find it difficult to identify those requirements that are applicable to them, and suggest that these may be presented in a more user-friendly format; and

we recommend that transitional provisions are implemented in respect of the proposed amendments which require micro-entities to apply historical cost accounting for tangible fixed assets, fixed asset investments and investment properties.

Further comments and full response to all questions raised in the invitation to comment are contained within the full comment letter.

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