Allow small listed firms to duck IFRS

SMALLER QUOTED companies should be allowed to use less complex rules than full IFRS to report their finances.

That is according to the Quoted Companies Alliance (QCA) that, when commenting on proposals to introduce IFRS-lite for SMEs, said the new tier should be available for AIM and PLUS-quoted companies rather than the full version.

IFRS-lite, known as FRSME, has been proposed by the Accounting Standards Board to replace UK GAAP.

The QCA wants AIM companies to use FRSME because it would be less complex and more appropriate for the size of companies on the markets.

"In the current environment, companies should be focusing on running their businesses and growing, not a time-consuming change to how they prepare their accounts," said Anthony Carey, chairman of the Quoted Companies Alliance Financial Reporting Committee and partner at Mazars LLP.

He continued: "The ASB has a unique opportunity to thoroughly update the accounting framework and should take the time to get the right long-term solution rather than needlessly rushing it."