ICAS: Micro-entity reporting exemptions risky
ICAS has warned against cutting micro-entity reporting requirements, saying the move could reduce trade and access to credit
ICAS has warned against cutting micro-entity reporting requirements, saying the move could reduce trade and access to credit
FINANCIAL REPORTING exemptions for micro-entities are misguided and could hamper trade and credit, ICAS has warned.
The institute questioned small company preparers and users of accounts: respondents said in a highly risk-sensitive environment that reducing disclosures could undermine companies’ positions when it comes to financiers, credit reference agencies and insurers.
Micro-entities already prepare abbreviated accounts and stakeholders said that, rather than cut disclosure, more information would be welcome, including extra details on creditors.
David Wood, executive director of technical policy and services at ICAS, said: “While abbreviated accounts may not be ‘perfect’, they do provide a balance between the needs of users and preparers of accounts. We believe that the usefulness of abbreviated accounts could be improved with some additional disclosures while still retaining a confidentiality element that preparers greatly value.”
The UK government and European Commission have been considering ways to reduce the reporting burden for micro-entities, including cutting requirements to ‘skeletal’ reporting. However, critics say such a move would limit transparency and could encourage financial indiscipline.
More about:
The numbers you crunch tell a story. Your expertis...
13yEmbracing 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 articleEU accounting and taxation legislation may not apply in Britain as PM says 'Brexit means Brexit' Read More...
View articlePublic opinion is split over whether Brexit will harm or improve the UK accountancy sector Read More...
View articleThe accountancy world has reacted to the news that the UK has voted to leave the EU Read More...
View articleThe latest edition of our 'Seven Days in Accountancy' quiz is here Read More...
View articleFRC amends FRS 105 to reflect legislative change and align better with international accounting standards Read More...
View articleKey British accounting associations shy away from taking stance over Brexit, finds Keith Nuthall Read More...
View articleBusiness leaders call for greater transparency and accountability with a commitment to address democratic deficit Read More...
View articleThe changes are primarily driven by the implementation of the new EU Accounting Directive in the UK Read More...
View article