FRC publishes third edition of quarterly newsletter on financial reporting

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24 Jun, 2014

The Accounting and Reporting Policy team of the Financial Reporting Council (FRC) has today published the third edition of their quarterly newsletter on financial reporting. The newsletter covers the period February 2014 to June 2014 and details the activities of the FRC since the last newsletter was published which covered the period October 2013 to January 2014.

The newsletter “Setting the Standard” covers the following key areas:  

An indication is also provided on a future Financial Reporting Standard for Smaller Entities (FRSSE) project which will entail a review of the FRSSE in light of the changes to the small companies’ regime that are expected to take place when the new EU Accounting Directive is implemented.  The FRC comment:

As the legal changes to the small companies’ regime will be significant, retaining the FRSSE in its current form is not a realistic option, nor really is having accounting standards for small companies that are based on standards for larger companies that have been withdrawn. We have been giving more thought to how we will replace the FRSSE for small entities and micro-entities, as we develop a consultation document that will seek formal stakeholder feedback. We expect to issue this in the summer, alongside a consultation from the Department for Business, Innovation and Skills (BIS) which will discuss its proposals for implementing the Accounting Directive in the UK. 

As well as seeking stakeholders’ views on our outline plans for bringing small entities within the scope of FRS 102 (with reduced disclosures), we also expect to propose a new Financial Reporting Standard for Micro-entities (FRSME). This will be based on the new micro-entities regime, which has now been reflected in the FRSSE, and may include recognition and measurement simplifications that are appropriate to the very smallest entities. 

Please click here for the full newsletter on the FRC website.

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