Deloitte UK views on use of IFRS for SMEs in UK

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02 Jul 2007

Deloitte & Touche (United Kingdom) has submitted a letter of comment to the UK Accounting Standards Board's invitation to comment on the way forward in the United Kingdom regarding accounting standards for unlisted companies.

Deloitte UK welcomes the IASB's SME Exposure Draft and supports the approach the IASB has taken in developing a simplified, self-contained set of accounting principles.

There is no case for two sets of wholly different accounting standards (IFRSs and UK GAAP) in the medium term in the UK, and we support the ASB's decision to consider an appropriate exit strategy for UK GAAP....

We support the continued use of a three-tier system in the UK and that it should be as follows:

  1. Full IFRSs for listed and publicly accountable groups and entities;
  2. IFRS for SMEs standard for large and medium private companies, including subsidiaries of listed and publicly accountable entities (the 'middle tier');
  3. FRSSE [UK's existing Financial Reporting Standard for Smaller Entities] for small companies.
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