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03 Feb 2010
HM Revenue Customs (HMRC) wants to delay the replacement of UK GAAP - the
accounting system for non-listed companies.
The taxman has called for a delay to avoid a clash with the
introduction of iXBRL - a new electronic, tagged, tax language.
The introduction of a new accounting code could clash with the rollout of a new computer filing system, leaving accountants snowed under and struggling, tax authorities have warned.
Both changes represent a dramatic change in how accountants do their job.
UK GAAP will be abandoned for financial years beginning after 1 January 2012, which if mandatory from that date, would involve many companies planning for the change in late 2011 – the same time they are coming to terms with filing under iXBRL, according to proposals being considered by the Accounting Standards Board.
In its submission, HMRC said it wants change date, for the replacement of UK GAAP, delayed.
“We suggest that it would be helpful to companies if the 'change' date was, say, a year later so that preparations for the first mandatory iXBRL filing and the change to the future UK GAAP did not coincide,” said Matt Blake, the commissioners’ advisory accountant with HMRC.
Senior sources within the ASB say there is already serious consideration being given to delaying the replacement of UK GAAP.
When asked about the issue, Ian Mackintosh, chairman of the Accounting Standards Board said he was mindful of the concerns and would discuss the issue once all submissions were read.
“We have heard many arguments during our decision about extending the period,” he said.
ICAS also said today that the timetable was unrealistic, and its implementation should be at least two years from the date the ASB publishes its final requirements.
"It is possible that implementation of the proposals for public benefit entities such as charities might need to be delayed, for example by changes to legislation or revisions to sectoral guidance, but this should not impede the transition for profit-making entities.," said David Wood, executive director, technical policy at ICAS.
Further reading: ASB sounds death knell for UK GAAP
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Visitor comments Add your comment
Ixrbl
It s the taxman,s new system which should be postponed not gaap
Posted by: michael ward, 03 Feb 2010 | 00:00
iXBRL is nuts anyway
iXBRL is yet another Government IT slow motion car crash. The replacement of UK GAAP is a FRC slow motion car crash. Both of which are scheduled to collide and make a nightmare of a pile up. UK business simply can not afford these usless unhelpful changes. They are pointless, cost business time and money, and give business nothing. It's high time both changes were binned.
Posted by: Chris Try, 03 Feb 2010 | 00:00
Why not delay compulsory iXBRL?
Knowing how complex bespoke systems can be to implement successfully, wouldn't it be better for HMRC to delay the compulsory deadlines for iXBRL?
At the moment there are no iXBRL solutions available for the majority of companies who do not use tax and accounts preparation software products, and who use Word and Excel for their submissions to HMRC. This is not surprising when the whole iXBRL concept was only signed off last April. The revision to UK GAAP has been in preparation for years.
Posted by: D M Marler, 03 Feb 2010 | 00:00
Dave
At this point I'm assuming the whole iXBRL thing will be taken care of by the software packages.
The issue is more whether the software companies can keep up. Actually it may be an advantage for them, avoids having to implement iXBRL on the old software.
Posted by: Dave, 03 Feb 2010 | 00:00
It *SHOULD* be the other way around
The right way to deal with this impending train wreck is to delay the introduction of XBRL, not the usual changes to accounting rules.
Make it mandatory for large companies first, let them sort out the niggles, then phase it in for medium sized companies over a couple of years, before inflicting it on the smaller (and poorer) companies.
That way the software should be sorted out properly before its a disaster.
Posted by: Merlinski, 03 Feb 2010 | 00:00
iXBRL, GAAP and whatever else
The question I ask is why delay the inevitable? Lets face it, we have sufficient experience to know that even where the replacement is delayed for say another 2 years, numerous companies would still be unprepared at the expiration period.
In my view accountants need to help their clients to take action now rather than at the 11th hour. Let's just get it over and done with. To that I say, Bring It.
"I am just saying"
Posted by: Marlon Appleton, 09 Feb 2010 | 00:00