Law firms plead for more time on accounting standard
IFRS 5 will be unfair on early adopters of new scheme, law firms claim
Some of the UK’s biggest law firms have written a letter to Dawn Primarolo,
paymaster general at Revenue & Customs, pleading for more time to absorb the
one-off tax cost of converting to International Financial Reporting Standard 5.
The letter, written by industry body the Association of Partnership
Practitioners, asks the government to spread the tax bill associated with
switching to IFRS 5 over a longer period, Legal Week reported.
IFRS 5 brings forward the way firms account for revenue and work-in-progress
and is expected to cost larger firms millions of pounds in extra taxes.
APP includes magical circle firm Allen & Overy, as well as Fox Williams
Currently, only firms converting to the accountancy standard FRS5 on or after
22 June, 2005, are be able to spread the tax costs of conversion over a three to
six year period, rather than paying it in one lump sum.