Draft IFRS for SMEs expected tomorrow
New code to be released amid concern over business costs
New code to be released amid concern over business costs
A new accounting code for the UK’s SMEs is expected be released for
consultation tomorrow.
The Accounting Standards Board (ASB) is on the verge of releasing new
accounting rules for about an estimated 80,000 UK businesses, which will
eventually lead to the scrapping of current accounting rules, UK GAAP.
The accounting rules will draw on international financial reporting standards
(IFRS), released by the International Accounting Standards Board last year.
The Department of Business (BIS) is is concerned the new rules will present
an unnecessary burden to businesses recovering from the recession and absorbing
the impact of the comprehensive spending review.
In a September 21 letter, BIS corporate law and governance director Richard
Carter wrote to ASB chairman Ian Mackintosh warning new accounting rules “could
well involve a significant increase in net cost to UK businesses”.
There’s also concern the new code will make accounting more complicated for
some businesses. Under the new classification systems all listed companies have
to use full international accounting rules. Companies listed on the PLUS
markets, which do not use full international accounting rules, may be forced to
contend with complex rules.
“I have doubts whether full IFRS is suitable in view of its increasing
complexity and theoretical nature,” ASB board member Andy Simmonds said earlier
this month.
Further reading:
Big
business main beneficiaries from IFRS: BIS
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe Bank of England has appointed Ernst and Young LLP (EY) as its external auditor from the financial year ending 28 February 2025. Read More...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View article