FRC to simplify small company accounting
FRC consulting on proposals to amend the Financial Reporting Standard for Smaller Entities
THE FRC is consulting on proposals to amend the Financial Reporting Standard for Smaller Entities (FRSSE) to reflect new legislation, introduced by BIS in November 2013, applicable to the UK’s smallest companies, known as micro-entities.
Micro-entities are now able to prepare more simplified financial statements with fewer disclosure notes.
Roger Marshall, FRC board member and chair of the accounting council said: “The FRC is proposing these amendments to allow micro-entities taking advantage of the new legal provisions, which permit reduced disclosure, to continue to apply the accounting principles of the FRSSE.
“This will ease the burden considerably on the UK’s 1.56 million smallest companies, many of which offer unique, specialist services and include the types of business the government sees as critical to the UK’s future economic growth.”
The FRC invites comments on these proposals, which are set out in FRED 52 Draft Amendments to the Financial Reporting Standard for Smaller Entities (effective April 2008) – Micro-entities. The comment period closes on 12 February 2014.